Which of the following occurs if a company experiences an increase in its fixed costs?
A) Net income would increase.
B) The break-even point would increase.
C) The contribution margin would increase.
D) The contribution margin would decrease.
E) More than one of the answers would occur.

Question

Quizplus · Accepted Answer

An increase in fixed costs means that a company must generate more revenue to cover these costs before it can start making a profit, thus increasing the break-even point.

Which of the Following Occurs If a Company Experiences an Increase