Given a Constant Sales Price, the Larger the Contribution Margin

question 33

Multiple Choice

Given a constant sales price, the larger the contribution margin, the:

• A) Higher the variable cost per unit as a percentage of the sales price.
• B) Higher the cash break-even point.
• C) Lower the financial break-even point.
• D) Lower the fixed costs as a percentage of the sales price.
• E) Lower the gross profit per unit sold.

---

Definitions:

Monopolist

A monopolist is a sole provider of a particular product or service in the market, possessing the power to control market prices and output levels.

Significant Control

The substantial influence or authority over the management and policies of a company, often through ownership of a large portion of its stock.

Mutual Interdependence

The condition in which parties are reliant on each other to achieve desired outcomes or benefits, commonly seen in economic and business contexts.

Fluctuate Widely

To vary or change significantly over time, often used in the context of prices, rates, or values.