Which of the following statements is TRUE if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant?
A) The breakeven point decreases.
B) The contribution margin increases.
C) The breakeven point remains the same.
D) The breakeven point increases.

Question

Quizplus · Accepted Answer

If the variable cost per unit increases while the sales price per unit and total fixed costs remain constant, the breakeven point will increase. This is because the contribution margin per unit will decrease, meaning that more units must be sold to cover the fixed costs and reach the breakeven point. Therefore, option D is the correct answer.

Which of the Following Statements Is TRUE If the Variable