Which One of These Combinations Must Increase the Contribution Margin

question 78

Multiple Choice

Which one of these combinations must increase the contribution margin?

• A) Increasing both the sales price and the variable cost per unit
• B) Increasing the sales quantity and increasing the variable cost per unit
• C) Decreasing the sales price and increasing the sales quantity
• D) Decreasing both fixed costs and depreciation expense
• E) Increasing the sales price and decreasing the variable cost per unit

---

Definitions:

Closely Held Corporations

Companies whose shares are owned by a small group of individuals or families, often with restricted stock sales.

Parent-subsidiary Relationships

The connection between a parent company that controls another company (subsidiary) through ownership of a majority of voting stock or influence.

RMBCA

Stands for the Revised Model Business Corporation Act, which is a model set of laws proposed to standardize the regulation of corporations across the United States.

Adopted

Refers to the acceptance or taking on of something, such as a law, resolution, amendment, or child, as one's own.