When Contribution Margin Per Unit Increases

question 44

Multiple Choice

When contribution margin per unit increases:

• A) break-even output increases.
• B) break-even output remains the same.
• C) break-even output decreases.
• D) fixed costs decrease.

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Definitions:

Ounces

A unit of weight in the avoirdupois system, equivalent to 1/16th of a pound or approximately 28.349 grams.

Cord

A unit of measure for wood, typically used for firewood or pulpwood, referring to a volume of 128 cubic feet.

Firewood

Wood that has been gathered or cut and is used primarily for fuel in a fire.

Pickup Truck

A vehicle with an enclosed cab and an open cargo area, usually with low sides and tailgate.