Answer the following statements true (T) or false (F)

1. When the variable cost per unit increases, the total number of units required to break even also
increases.
2. When the variable cost per unit increases, the contribution margin on each unit decreases.
3. If the variable cost per unit decreases, the total number of units required to break even will increase.
4. Higher fixed costs decrease the total contribution margin required to break even.
5. Higher fixed costs increase the total number of units required to break even.


1. True
2. True
3. False
4. False
5. True

Business

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