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.

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Definitions:

Exaggerated Claim

A statement or claim that exceeds the truth or reality, usually made to deceive or mislead.

Fraudulent

Involves deceitful conduct designed to manipulate another person or entity, typically for personal gain.

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Tort Of Deceit

A legal wrong involving intentional misrepresentation or falsehood that causes harm to another.