Given a Constant Sales Price, the Larger the Contribution Margin

question 121

Multiple Choice

Given a constant sales price, the larger the contribution margin, the:

• A) Higher the variable cost per unit as a percentage of the sales price.
• B) Higher the cash break-even point.
• C) Lower the financial break-even point.
• D) Lower the fixed costs as a percentage of the sales price.
• E) Lower the gross profit per unit sold.

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