Stimulate sales volume

Stimulate sales volume

Select the statement that is true.
Answer 
1. If fixed costs decrease while variable cost per unit remains constant, breakeven sales will increase. 
2. If fixed costs increase while variable cost per unit remains constant, the new contribution margin in relation to the old will be unchanged. 
3.If fixed costs increase while variable cost per unit remains constant, unit contribution margin will increase. 
4.If fixed costs decrease while variable cost per unit remains constant, unit contribution margin will increase. 
5. If fixed costs increase while variable cost per unit remains constant, breakeven sales will decrease

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