If the Fixed Costs for a Product Increase and the Variable

question 83

Multiple Choice

If the fixed costs for a product increase and the variable costs (as a percentage of sales dollars) increase, what will be the effect on the contribution margin ratio and the break-even point, respectively?
$\begin{array} { cc} & \text { Contributim Margin Ratio } & \text { Break-even Point } \\\end{array}$
A. $\begin{array} { cc} &&&& \text { Decrease } & &&&& && \text { Increase } \\\end{array}$
B. $\begin{array} { cc} &&&& \text { Increase } & &&&& && \text { Decrease } \\\end{array}$
C. $\begin{array} { cc} &&&& \text { Decrease } & &&&& && \text { Decrease } \\\end{array}$
D. $\begin{array} { cc} &&&& \text { Increase } & &&&& &&\text { Increase } \\\end{array}$

Describe the process and implications of hedging with futures and options in various scenarios.

Understand interest rate swaps and their benefits for different types of borrowers.

Explain the concept of a risk profile and its importance in financial planning.

Differentiate between long-term and short-term financial risks and their sources.

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Definitions:

Positional Power

The authority and power vested in an individual’s role or position within an organization's hierarchy.

Knowledgeable

Having or showing understanding, awareness, or familiarity with facts, information, or skills through experience or education.

Leadership And Power

The relationship between the ability to influence others and the capacity to use this influence to direct and motivate their actions towards achieving goals.

Coercion

The act of compelling someone to act in a certain way by use of force or threats, often seen negatively in the context of leadership and management strategies.