The Total Contribution Margin Decreases If Sales Volume Remains the Same

question 9

Multiple Choice

The total contribution margin decreases if sales volume remains the same and which of the following occurs?

• A)Variable expense per unit decreases.
• B)Variable expense per unit increases.
• C)Fixed expenses increase.
• D)Fixed expenses decrease.

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Definitions:

Excess Demand

Occurs when the quantity demanded of a good or service at a given price exceeds the quantity supplied, often leading to a shortage in the market.

Price Of Burritos

The cost consumers pay to purchase a burrito, which can vary based on ingredients, location, and restaurant type.

Demand Shifts

Changes in the desire or need for a product or service, influenced by factors such as price, consumer preferences, and income levels.

Excess Supply

A situation where the quantity of a good supplied is greater than the quantity demanded at a given price.