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:

Inspiratory Reserve Volume (IRV)

The additional amount of air that can be inhaled after a normal inhalation, increasing lung volume beyond the tidal volume.

Expiratory Reserve Volume (ERV)

The additional amount of air that can be forcibly exhaled after a normal exhalation.

Functional Residual Capacity (FRC)

The volume of air remaining in the lungs after a normal, passive exhalation, critical for gas exchange between breaths.

Tidal Volume (TV)

The volume of air moved into or out of the lungs during a normal breath, at rest.