If Both the Variable Cost Per Unit and the Selling

question 134

Multiple Choice

If both the variable cost per unit and the selling price per unit decrease, the new contribution margin ratio in relation to the old contribution margin ratio will be:

• A) Lower.
• B) Higher.
• C) Unchanged.
• D) Cannot determine with the information given.

---

Definitions:

Genetic Drift

A mechanism of evolution that involves random changes in the frequency of alleles within a population over time.

McDonald-Kreitman Test

A method used in molecular evolution to compare the ratio of non-synonymous to synonymous substitutions in a gene between species, assessing natural selection.

Homologous Gene

Genetic sequences that are shared by different species and have been inherited from a common ancestor.