If the Sales Price Per Unit Increases While the Variable

If the sales price per unit increases while the variable cost per unit and total fixed costs remain constant, which of the following statements is true?

A) The contribution margin decreases and the breakeven point decreases.
B) The contribution margin increases and the breakeven point decreases.
C) The contribution margin increases and the breakeven point increases.
D) The contribution margin decreases and the breakeven point increases.

Correct Answer:

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