What Will Be the Effect on the Contribution Margin Ratio

question 146

Multiple Choice

What will be the effect on the contribution margin ratio if the selling price per unit decreases and variable cost per unit remains the same?

• A)It will decrease.
• B)It will increase.
• C)It will remain the same.
• D)It is impossible to determine with the given information.

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Definitions:

Theory of Planned Behavior

A psychological theory that predicts human behavior on the basis of attitudes, subjective norms, and perceived control over the behavior.

Description

The act of providing details or characteristics of someone or something to give a clear picture.

Organization

pertains to a structured group of people with specific roles and duties working together to achieve common goals or objectives, often in a coordinated and systematic manner.

Direction

Guidance or supervision on how to perform tasks or the course along which something moves or is aimed to move.