Why Does the Unit Selling Price Increase When Expected Volume

question 8

Multiple Choice

Why does the unit selling price increase when expected volume is lower than budgeted volume?

• A) Variable costs and fixed costs have to be spread over fewer units.
• B) Fixed costs and desired ROI have to be spread over fewer units.
• C) Variable costs and desired ROI have to be spread over fewer units.
• D) Fixed costs only have to be spread over fewer units.

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Definitions:

Environment

The surrounding conditions and factors that affect living organisms, including natural elements and human-made influences.

Tertiary Circular Reactions

A stage in Piaget's theory of development where infants (12-18 months) experiment with new behaviors to see the outcomes, indicating the beginning of intentional actions.

Action Sequences

A series of actions or steps taken towards achieving a particular end.