If a Company Increases Its Sales Price by $5 and Its

question 137

Multiple Choice

If a company increases its sales price by $5 and its variable costs per unit also increase $5, then

• A)total contribution margin will decrease.
• B)the contribution margin per unit will decrease.
• C)the contribution margin per unit will increase.
• D)the contribution margin per unit will not change

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Definitions:

Colon Cancer

A type of cancer that begins in the large intestine (colon), part of the digestive tract.

Bulbourethral Gland

A pair of small glands located at the base of the penis in males, secreting a fluid that lubricates and neutralizes acidity in the urethra during sexual arousal.

Prostate Gland

A gland in the male reproductive system that produces seminal fluid, which nourishes and transports sperm.

Cowper Gland

A pair of small glands in the male reproductive system that produce a fluid to cleanse and lubricate the urethra prior to ejaculation.