Break-even-analysis
Garth Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then:
Contribution Contribution Break-even
Margin per unit margin ratio in Units
A Increases Increases Decreases
B No change No change No change
C No change Increases No change
D Increases No change Decreases
Choose one answer.
a. A
b. B
c. C
d. D