If a Company Has a Positive Contribution Margin but Net

question 44

Multiple Choice

If a company has a positive contribution margin but net income is low or negative,what are some ways of increasing net income?

• A) Increase sales price
• B) Increase sales volume
• C) Decrease variable costs
• D) All of these are ways to increase net income

Insight into how market conditions, such as price ceilings and floors, affect consumer and producer surplus.

Grasp the impact of market demand shifts on total surplus at new equilibrium prices.

Understand the process of auction and bid pricing in market transactions.

Understand the concept of producer surplus and how it is determined in a market equilibrium.

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Definitions:

Accessory Belt

A belt that drives ancillary components such as the alternator, water pump, power steering pump, and air conditioning compressor in a vehicle.

Ethylene Glycol

A chemical compound used as the primary ingredient in antifreeze and coolant for vehicle engines.

Heater Core

A small, radiator-like component used to supply heat for the passenger compartment.

High-Pressure

Conditions involving greater than normal pressure, often used in the context of fluids or gases within a system.