If a Company Increases the Price of Its Product by 10

question 73

Multiple Choice

If a company increases the price of its product by 10% with no change in sales volume,

• A)the total contribution margin will not change.
• B)fixed cost per unit will change.
• C)contribution margin per unit will change.
• D)total fixed costs will decline.

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Definitions:

Carbon Allowances

Permits that allow the holder to emit a certain amount of carbon dioxide or other greenhouse gases, often used in cap-and-trade systems to reduce emissions.

Cap and Trade

An environmental policy tool that sets a limit on emissions and allows businesses to buy and sell permits for a certain amount of emissions, encouraging reduction in pollution.

Sustainability Supply Chains

Supply chains designed and managed to meet current needs without compromising the ability of future generations to meet their needs, focusing on environmental, social, and economic sustainability.

Cap and Trade

An environmental policy tool that sets a limit (cap) on emissions and allows entities to buy and sell permits for emissions under that cap.