Which TWO of the following statements are valid?

An organisation produces and sells a single product. The organisation’s management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)
A . If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
B . If the fixed cost changed to $445,000, the breakeven point would not change.
C . If the sales volume changed to 220,000 units, the breakeven point would not change.
D . If the selling price changed to $22 per unit, the breakeven point would become lower.
E . If the variable cost changed to $16 per unit, the breakeven point would become lower.

View Answer

Answer: A,C