If the Total Contribution Margin Decreases and Fixed Costs Do

question 145

Multiple Choice

If the total contribution margin decreases and fixed costs do not change, pre-tax income

• A) Decreases by an equal amount
• B) Increases by an equal amount
• C) Does not change
• D) Increases by some other amount

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Definitions:

Federal Reporter

A set of books that publish the official court decisions of the United States federal courts.

Published Opinions

Legal decisions or conclusions by courts that are officially released and recorded, often used as precedents in future cases.

Persuasive Authority

References or citations that a court may consider in making its decision but is not obliged to follow because they come from a different jurisdiction or are secondary sources.

Sixth Circuit

A federal judicial circuit in the United States that encompasses parts of the Midwest, including Kentucky, Michigan, Ohio, and Tennessee.