Which of the Following Would Take Place If a Company

question 68

Multiple Choice

Which of the following would take place if a company was able to reduce its variable cost per unit, all of things remaining constant? $\begin{array} { | l | l | l | } \hline & \text { Contribution Margin } & \text { Break-even Point } \\\hline 1 & \text { Increase } & \text { Increase } \\\hline 2 & \text { Increase } & \text { Decrease } \\\hline 3 & \text { Decrease } & \text { Increase } \\\hline 4 & \text { Decrease } & \text { Decrease } \\\hline 5 & \text { Increase } & \text { No effect } \\\hline\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Cartel Breakdown

The disintegration or failure of a cartel, which is an agreement among competing firms to control prices or exclude entry of a new competitor in the market.

Total Output

The total volume of goods and services produced by an economy over a specific period of time, also known as Gross Domestic Product (GDP).

Accommodation

Adjustments or modifications made to the work environment or job responsibilities to suit the needs of employees, often related to disability or religion.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner.