Which of the Following Would Take Place If a Company

Multiple Choice

Which of the following would take place if a company was able to reduce its variable cost per unit, all of things remaining constant? $\begin{array} { | l | l | l | } \hline & \text { Contribution Margin } & \text { Break-even Point } \\\hline 1 & \text { Increase } & \text { Increase } \\\hline 2 & \text { Increase } & \text { Decrease } \\\hline 3 & \text { Decrease } & \text { Increase } \\\hline 4 & \text { Decrease } & \text { Decrease } \\\hline 5 & \text { Increase } & \text { No effect } \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5