A Company Can Achieve an Increase in Contribution Margin (Given

question 45

Multiple Choice

A company can achieve an increase in contribution margin (given no other changes) if:

• A)Fixed costs decrease
• B)Selling price decreases
• C)Fixed costs increase
• D)Variable costs decrease

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Definitions:

Market Segments

Refers to subgroups within a general market that share similar characteristics, preferences, and needs, allowing companies to tailor their products and marketing efforts.

Washburn Guitars

A renowned manufacturer of stringed instruments, including electric, acoustic guitars, and basses, known for quality and craftsmanship.

Price Points

Specific prices at which goods or services are marketed to cater to different segments of consumers or to trigger purchase decisions.

Market Segments

Distinct groups within a broader market that have shared characteristics, needs, or preferences, targeted differently by marketers.