Why Does the Unit Selling Price Increase When Expected Volume

question 8

Multiple Choice

Why does the unit selling price increase when expected volume is lower than budgeted volume?

• A) Variable costs and fixed costs have to be spread over fewer units.
• B) Fixed costs and desired ROI have to be spread over fewer units.
• C) Variable costs and desired ROI have to be spread over fewer units.
• D) Fixed costs only have to be spread over fewer units.

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Definitions:

Observable Behavior

Actions or reactions of an individual that can be directly seen and measured.

Overt Behavior

Observable actions or responses of individuals that can be seen and measured directly by others.

Nature-Nurture Debate

The nature-nurture debate is an ongoing discussion in psychology and sociology concerning the relative importance of genetic inheritance (nature) and environmental factors (nurture) in determining human behavior and traits.

Human Traits

Characteristics or qualities that define human beings, including physical, psychological, and emotional attributes.