For Each of the Following Statements,fill in the Blank with Either

question 34

Essay

For each of the following statements,fill in the blank with either the word increase,decrease,or stay the same.
a.
All else being equal,as the sales price per unit increases,the contribution margin per unit will _________________.
b.
All else being equal,as variable costs per unit increase,the contribution margin per unit will _________________.
c.
All else being equal,as total fixed costs increase,the contribution margin per unit will ________________.
d.
All else being equal,as sales volume increases,total fixed costs will _______________.
e.
All else being equal,as sales volume increases,total variable costs will _____________.

---

Definitions:

Days' Sales Outstanding

A financial metric that shows the average number of days it takes a company to collect payments after a sale has been made.

Exercise Value

Equal to the current price of the stock (underlying the option) less the strike price of the option.

Call Options

Financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.

Strike Price

The price stated in the option contract at which the security can be bought (or sold). Also called the exercise price.