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. $\begin{array} { cc} &&&& \text { Increase } & &&&& &&\text { Increase } \\\end{array}$

Explain the impact of changes in the prices of substitute goods on the demand for a product.

Identify the outcomes of simultaneous shifts in both supply and demand curves on equilibrium price and quantity.

Understand the significance of equilibrium in achieving allocative efficiency in markets.

Understand the historical significance of slave rebellions, including the Amistad case and its Supreme Court decision.

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Definitions:

Customers

People or companies that buy products or services from a business.

Collection Time

The average period that a company takes to collect cash from its credit sales.

Cheques

A document that is written, dated, and signed, which gives an absolute command to a bank to pay a specific amount of money to the recipient.