All Else Equal,the Contribution Margin Must Increase As

question 53

Multiple Choice

All else equal,the contribution margin must increase as:

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

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Definitions:

Opportunity Costs

The price paid by not choosing the second-best option available during decision-making.

Capital Goods

Physical assets such as machinery and buildings used by businesses to produce goods and services over time.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, indicating an improvement in the country's economic health.

Resource Allocation

The process of distributing available resources among various competing needs or uses in order to achieve desired objectives.