All Else Constant,as the Variable Cost Per Unit Increases,the

question 47

Multiple Choice

All else constant,as the variable cost per unit increases,the

• A)net profit increases.
• B)contribution margin decreases.
• C)sensitivity to fixed costs decreases.
• D)operating cash flow increases.
• E)financial breakeven point decreases.

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Definitions:

Expensive Items

Products or commodities that have a high purchase price, often due to their quality, rarity, or luxurious nature.

Trial Basis

A provisional period during which a product, service, or employee is tested or used before making a final decision regarding adoption, employment, or purchase.

Net 30

A payment term indicating that the full payment is due 30 days after the invoice date.

Payment Invoice

A document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided to the buyer.