If Selling Price Per Unit and Sales Volume Remain the Same

question 70

Multiple Choice

If selling price per unit and sales volume remain the same while variable costs per unit decrease and total fixed costs decrease, which of the following is false:

• A)Contribution margin ratio will increase.
• B)Contribution margin per unit will increase.
• C)Net operating income will increase.
• D)Net operating income will decrease.

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Definitions:

Problem-solving Approach

A methodical process for finding solutions to challenges or issues by identifying the problem, analyzing information, and implementing strategies.

Audience Resistant

Refers to listeners or readers who are skeptical of, or opposed to, the message being communicated.

Indirect Approach

A communication strategy that employs a more roundabout or subtle way of making a point, rather than stating it outright.

Analyzing Audience

The process of understanding the characteristics, needs, and expectations of the audience to whom a message is directed.