1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the old B.E.P will be . | Faculties

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Ram Sharma

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📊 Cost and Management Accounting (CMA)

Q. 1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the old B.E.P will be .

(A) lower .
(B) higher.
(C) unchanged .
(D) indeterminate.

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✅ Correct Answer: (B) higher.

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