Assume That Only the Specified Parameters (That Is, Variables) Change

question 69

Multiple Choice

Assume that only the specified parameters (that is, variables) change in a sensitivity analysis. The contribution margin ratio increases when:

• A) Total short-term fixed costs increase.
• B) Total short-term fixed costs decrease.
• C) The variable cost per unit increases.
• D) The variable cost per unit decreases.
• E) Sales volume increases.

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Definitions:

Particular Target

A specific objective or item that is singled out for attention or action.

Good Neighbor Policy

A foreign policy of the United States, initiated by President Franklin D. Roosevelt in the 1930s, aimed at strengthening friendly relations and mutual defense with the countries of Latin America.

Franklin D Roosevelt

The 32nd President of the United States, serving from 1933 to 1945, known for leading the country during the Great Depression and World War II with policies including the New Deal.