Which of the Following Statements Is Correct About the Relationship

question 52

Multiple Choice

Which of the following statements is correct about the relationship of the CVP factors?

• A)Variable costs will always be more than fixed costs.
• B)Demand will always be weaker at lower prices.
• C)Sales volume contributes to more profit at higher volumes.
• D)Sales price at lower volumes always contributes to higher contribution margins.

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Definitions:

Hostility

An antagonistic attitude or feeling of enmity towards others, often manifesting in aggressive behavior.

Laid Off

The temporary or permanent dismissal of employees from their job due to economic reasons or company restructuring, not because of personal performance.

Employer

An individual or organization that hires and pays people to do work.

Life Satisfaction

A measure of well-being and contentment with one's life overall, reflecting a general sense of happiness and fulfillment.