Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 27

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.