All Else Equal,the Contribution Margin Must Increase As

question 53

Multiple Choice

All else equal,the contribution margin must increase as:

• A)both the sales price and variable cost per unit increase.
• B)the fixed cost per unit declines.
• C)the variable cost per unit declines.
• D)sales price per unit declines.
• E)the sales price minus the fixed cost per unit increases.

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Definitions:

Retained Earnings

Accumulated net income that a company has not distributed to its shareholders as dividends, reinvested in the business.

Dividends

Payments made by a corporation to its shareholder members, typically derived from profit.

Statement of Stockholder's Equity

A financial statement that shows changes in the value of a company's equity over a specific period, including shares issued and dividends paid.

Common Stock

Equity securities that represent ownership in a corporation, providing voting rights and potential dividends to shareholders.