To Increase the Contribution Margin a Firm Must Either _____

question 104

Multiple Choice

To increase the contribution margin a firm must either _____ or _____.

• A) Increase its sales price; increase its fixed cost per unit.
• B) Increase its sales price; decrease its variable cost per unit.
• C) Increase its sales price; decrease its fixed cost per unit.
• D) Increase its variable cost per unit; decrease its fixed cost per unit.
• E) Decrease its variable cost per unit; decrease its fixed cost per unit.

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Definitions:

Essential Terms

The necessary and fundamental conditions included in a contract that are critical to its enforcement and validity.

Unenforceable

Refers to a contract or clause that, due to legal deficiencies, cannot be executed by a court.

Enforceable Contract

A binding legal agreement between two or more parties that is recognized by the law and has elements of offer, acceptance, consideration, and mutual consent.

Party Against Enforcement

The individual or entity against whom the application of a law, regulation, or contract is sought to be enforced.