Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 37

If a company's total fixed cost decreases by $10,000, which of the following will be true?
a. The break-even point will increase.
b. The variable cost ratio will increase.
c. The break-even point will be unchanged.
d. The variable cost ratio will be unchanged.
e. The contribution margin ratio will increase.