If Both the Variable Cost Per Unit and the Selling

question 3

Multiple Choice

If both the variable cost per unit and the selling price per unit increase, 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.

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Definitions:

Single Tax

A fiscal policy advocating for a sole tax to be levied on a single source, often proposed as a tax on land value.

Economic Rents

Payments to a factor of production in excess of the cost needed to bring that factor into production.

Land Ownership

The legal right to possess, use, and control land.

Single-Tax Movement

A political and economic ideology that proposes a single tax, typically on land, to replace all other taxes.