Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

The fixed costs of a business rise, whereas all other revenues and costs stay unchanged. What happens if output does not change?

  • Acontribution per unit decreases; break-even point per unit decreases; margin of safety per unit decreases
  • Bcontribution per unit increases; break-even point per unit no change; margin of safety per unit increases
  • Ccontribution per unit no change; break-even point per unit increases; margin of safety per unit decreases
  • Dcontribution per unit no change; break-even point per unit increases; margin of safety per unit increases

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