As the variable cost increases but the selling price remains constant, the A. Degree of operating leverage declines B. Margin of safety stays constant C. Breakeven point goes down D. Contribution margin ratio goes up

As the variable cost increases but the selling price remains constant, the A. Degree of operating leverage declines B. Margin of safety stays constant C. Breakeven point goes down D. Contribution margin ratio goes up

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

As the variable cost increases but the selling price remains constant, the

A. Degree of operating leverage declines
B. Margin of safety stays constant
C. Breakeven point goes down
D. Contribution margin ratio goes up

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6..
Break-even analysis assumes over the relevant range that Group of answer choices total variable costs are linear. fixed costs per unit are constant. total variable costs are nonlinear. total revenue is nonlinear.
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When the sales price per unit decreases, the contribution margin per unit A. decreases B. increases OC. increases proportionately OD. remains the same 13