If the Contribution Margin Ratio Increases

question 72

Multiple Choice

If the contribution margin ratio increases

• A) the variable cost ratio decreases.
• B) the break-even point increases.
• C) fixed costs must have decreased.
• D) price must have decreased.
• E) more units must be sold to break even.

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Definitions:

Masonry Firm

A business that specializes in the construction and repair of structures made from brick, stone, and similar materials.

Price

The financial sum needed for the purchase of a product or service.

Marginal Product

The change in output resulting from employing one more unit of a specific input, keeping all other inputs constant.

Bricklayers

Expert craftsmen specialized in using bricks, blocks, and various building materials to build or mend walls, partitions, arches, and additional structural elements.