As Sales Exceed the Break- Even Point, a High Contribution-

question 97

Multiple Choice

As sales exceed the break- even point, a high contribution- margin percentage:

• A) increases profits faster than does a low contribution- margin percentage
• B) decreases profits at the same rate as a low contribution- margin percentage
• C) increases profits slower than does a low contribution- margin percentage
• D) increases profits at the same rate as a low contribution- margin percentage

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Definitions:

Gas Pump

A device at a filling station that dispenses liquid fuel, such as gasoline or diesel, into the tank of a vehicle.

South Dakota

An American state situated in the Midwest, famous for notable sites including Mount Rushmore.

Revenue-maximizing Price

The optimal price point at which a company can sell its goods or services to maximize its revenue, given its cost structure and market demand.

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Certificates or electronic cards that grant the holder entry to watch a football game.