The Contribution Margin Must Increase As

question 309

Multiple Choice

The contribution margin must increase as:

• A) Both the sales price and variable cost per unit increase.
• B) The fixed cost per unit declines.
• C) The gap between the sales price and the variable cost per unit widens.
• D) Sales price per unit declines.
• E) The sales price minus the fixed cost per unit increases.

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Definitions:

Parent Entity

A company that holds a controlling interest in one or more subsidiaries, giving it control over their operations and policies.

Sub-groups

are smaller, specific groups formed within a larger group, often with a particular focus or task within the broader organization or study.

Potential Voting Rights

Voting rights that are not currently exercisable or convertible but could potentially give the holder control or significant influence over the decision-making of an entity.

Voting Rights

The rights of shareholders or members to vote on company or organizational matters, usually at meetings like annual general meetings.