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:

Minority Group

A social group that is systematically denied the same access to power and resources available to society’s dominant groups though its members are not necessarily fewer in number than the dominant groups.

Power

Denotes the capacity or ability to direct or influence the behavior of others or the course of events.

Resources

Assets, materials, and other forms of capital that can be utilized by individuals or organizations to achieve specific goals or carry out various functions.

Racial Categories

Classifications of human beings into groups based on physical traits, ancestry, genetics, or social relations, often used in demographic contexts.