The Total Contribution Margin Decreases If Sales Volume Remains the Same

question 88

Multiple Choice

The total contribution margin decreases if sales volume remains the same and which of the following occurs?

• A) Fixed expenses increase.
• B) Fixed expenses decrease.
• C) Variable expense per unit increases.
• D) Variable expense per unit decreases.

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Definitions:

Directional Control

The mechanism or system used to steer or change the direction of a vehicle or a machine part.

Pilot

Any of a number of devices that receives a signal and then effects an action; can also be known as a relay.

Spool

A cylindrical device around which materials such as thread, wire, or film are wound for storage.

Swashplate Pump

A type of hydraulic pump where a rotating swashplate controls the flow of fluid, used in various high-pressure hydraulic systems.