Question 1
The breakeven point decreases if ________. | |
◦ the variable cost per unit increases
◦ the total fixed costs decrease
◦ the contribution margin per unit decreases
◦ the selling price per unit decreases
Question 2
The breakeven point is the activity level where ________.
◦ revenues equal fixed costs
◦ revenues equal variable costs
◦ contribution margin equals total costs
◦ revenues equal the sum of variable and fixed costs