The Contribution Margin Ratio Always Increases When the

question 67

Multiple Choice

The contribution margin ratio always increases when the

• A)variable costs as a percentage of net sales increase.
• B)variable costs as a percentage of net sales decrease.
• C)break-even point increases.
• D)break-even point decreases.

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Definitions:

Reciprocal Alliances

Partnerships or agreements between two or more parties that involve mutual benefits or exchanges.

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.

Brokers

Intermediaries who facilitate transactions between buyers and sellers in various financial, real estate, or commodity markets.

Structural Holes

Social network gaps between individuals or groups that provide opportunities for those who can bridge these gaps to access diverse information or resources, thereby gaining advantages.