Question
If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin
If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin and the break-even point?
Contribution margin | Break-even point | |
A) | Increase | Decrease |
B) | Decrease | Increase |
C) | No change | No change |
D) | No change | Increase |
a.
Option A
b.
Option B
c.
Option C
d.
Option D
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Cost Management A Strategic Emphasis
Authors: Edward Blocher, David F. Stout, Paul Juras, Steven Smith
8th Edition
1259917029, 978-1259917028
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