If Unit Variable Cost Is Reduced and Selling Price and Fixed

question 84

Multiple Choice

If unit variable cost is reduced and selling price and fixed cost remain the same, then:

• A)Contribution margin will decrease.
• B)Contribution margin will remain the same.
• C)Sales volume will increase
• D)Sales volume will decrease.
• E)Overall profit will increase.

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Definitions:

Signal-Detection Procedures

Methods in psychological research and neuroscience for measuring the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

False Alarm

An event where a warning or indication of danger is given, but no actual threat exists.

Target

An object or goal that one aims to reach or achieve, often used in the context of objectives, benchmarks, or physical marks aimed at in shooting or throwing.

Signal-Detection Analysis

A statistical method used to determine the ability to differentiate between information-bearing patterns and random patterns that distract from the information.