Increasing the Selling Price and Decreasing Sales Volume Will Increase

question 59

Multiple Choice

Increasing the selling price and decreasing sales volume will increase profit if:

• A) Variable cost per unit remains constant
• B) Fixed cost per unit increases
• C) Total variable cost decreases
• D) Contribution margin increases

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Definitions:

Paid Cash

The action of disbursing money to settle a transaction or obligation.

Placed on Account

A term referring to a transaction being recorded on a company's books under an account receivable or payable, typically indicating a credit sale or purchase.

Accounting Equation

A foundational principle in accounting stating that assets equal liabilities plus equity, serving as the basis for the double-entry bookkeeping system.

Vendor Payment

The process of paying money owed to a supplier for products or services purchased on credit.