There Is an Important Relation Between Contribution Margin and Profit

question 16

Multiple Choice

There is an important relation between contribution margin and profit.Which of the following statements is not true?

• A)As the number of units sold increases, total contribution margin increases, but fixed costs remain the same.
• B)As the number of units sold rises, profit increases by the additional contribution margin per unit.
• C)As the number of units sold decreases, total contribution margin decreases, but fixed costs remain the same.
• D)As the number of units sold falls, profit increases by the additional contribution margin per unit.

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Definitions:

Retain Information

The capacity to remember or hold onto information over time.

Ended

Having come to a conclusion or termination; the final point of something.

Phonological Loop

A component of the working memory model that deals with auditory information, allowing us to retain and manipulate spoken and written material.

Working Memory

A cognitive system that holds information temporarily for processing and manipulation.