The Contribution Margin Ratio Increases When

question 127

Multiple Choice

The contribution margin ratio increases when

• A) fixed costs increase.
• B) fixed costs decrease.
• C) variable costs as a percentage of sales decrease.
• D) variable costs as a percentage of sales increase.

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Definitions:

Intrinsic Rewards

Satisfaction a person derives from the activity itself, rather than from any external rewards.

Extrinsic Rewards

Benefits provided by external factors, such as money, grades, or awards, which motivate individuals to perform tasks.

Task Performance

The execution and completion of specific duties or assignments as part of one's role or job responsibilities.

Intrinsic Rewards

Personal satisfaction or enjoyment derived from engaging in an activity or achieving a goal, independent of any material or external rewards.