What Will Happen to the Contribution Margin If Fixed Costs

question 181

Multiple Choice

What will happen to the contribution margin if fixed costs related to a product increase while variable costs and sales price remain constant?

• A)Will increase
• B)Will not change
• C)Will decrease
• D)Will stay the same

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Definitions:

Vertical

An orientation or direction that goes straight up and down, perpendicular to the horizon.

Gini Coefficient

A gauge for comparing income distribution within a group, starting at 0 for utter equity and peaking at 1 for maximal inequity.

Inequality

Refers to the uneven distribution of resources or opportunities among different groups or individuals within a society.

Gini Coefficient

A measure of income distribution or inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).