39. (2 Suppose variable expenses were to decrease by $3.00 per unit. What effect would this have on the cost volume profit analysis? ) The unit contribution margin would ise by $3.00 The break-even point in units would increase. The break-even point in units would decrease. The unit contribution margin would rise by $3.00 AND the break-even point in units would decrease.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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39. (2 Suppose variable expenses were to decrease by $3.00 per unit. What effect
would this have on the cost volume profit analysis?
)
The unit contribution margin would ise by $3.00
The break-even point in units would increase.
The break-even point in units would decrease.
The unit contribution margin would rise by $3.00 AND the break-even
point in units would decrease.
Transcribed Image Text:39. (2 Suppose variable expenses were to decrease by $3.00 per unit. What effect would this have on the cost volume profit analysis? ) The unit contribution margin would ise by $3.00 The break-even point in units would increase. The break-even point in units would decrease. The unit contribution margin would rise by $3.00 AND the break-even point in units would decrease.
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