If the Variable Cost Per Unit Decreases While the Sales

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

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

Correct Answer:

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