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:

Chronic Medical Condition

A long-lasting health issue that typically requires ongoing management or treatment.

Acute Medical Condition

A disease or disorder that comes on rapidly and is often accompanied by severe symptoms, requiring immediate medical attention.

Transitive Inference

Understanding the relationship between two objects by knowing the relationship of each to a third object.

Divergent Thinking

A type of creative thinking that involves generating multiple unique solutions to a problem.