If a Company's Variable Costs Per Unit Were to Increase

question 22

Multiple Choice

If a company's variable costs per unit were to increase but its unit selling price stays constant,the effect on a profit-volume graph would be that the

• A)contribution margin line would shift upward parallel to the present line.
• B)contribution margin line would shift downward parallel to the present line.
• C)slope of the contribution margin line would be pronounced (steeper).
• D)slope of the contribution margin line would be less pronounced (flatter).

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Definitions:

Method

A systematic approach or procedure for achieving a particular objective.

Practice

The act of performing an activity repeatedly or regularly in order to improve or maintain one's proficiency.

Mental Rehearsal

The practice of visualizing or mentally practicing a task or performance in advance.

Ability to Adapt

The capacity to adjust to new conditions or environments, showing flexibility and resilience.