If the Fixed Costs for a Product Increase and the Variable

Multiple Choice

If the fixed costs for a product increase and the variable costs (as a percentage of sales dollars) increase,what will be the effect on the contribution margin ratio and the break-even point,respectively? $$\begin{array} { | c | c | c | } \hline & \text { Contribution Margin Ratio } & \text { Break-eren Point } \\\hline \text { A. } & \text { Decrease } & \text { Increase } \\\hline \text { B. } & \text { Increase } & \text { Decrease } \\\hline \text { C. } & \text { Decrease } & \text { Decrease } \\\hline \text { D. } & \text { Increase } & \text { Increase } \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D