Question

If the variable cost per unit goes down, a. Contribution margin increases and Break-even point decreases. b. Contribution margin decreases and Break-even point increases. c. Total variable cost increases and Break-even point decreases. d. Contribution margin increases and Break-even point increases. e. Contribution margin and Break-even point remains unchanged.

Answer 1

A. Contribution margin increases and Break-even point decreases

Step-by-step explanation: