Assuming Price Greater Than Cost Per Unit,the Contribution Margin Must

question 79

Multiple Choice

Assuming price greater than cost per unit,the contribution margin must increase as:

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

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Definitions:

Foreign Market

A market outside of a company's home country where it engages in selling its products or services.

Direct Ownership

A form of business ownership where individuals or entities have complete control over their investments or assets without intermediaries.

Foreign Market

Refers to markets outside the company's home country where it can sell or market its products or services.

Exporting

The process of exporting products or services to a foreign country for the purpose of selling them.