Register now or log in to join your professional community.
a. Increase both the fixed costs and the contribution mar gin.
b. Decrease both the fixed costs and the contribution
mar gin.
c. Decrease the fixed costs and increase the contribution
margin.
d. Increase the fixed costs and decrease the contribution
margin.
answer is c.
when fixed cost is decrease and c.m increase it means breakeven reduce.
contribution margin cover fixed cost at breakeven point.