The Contribution Margin

question 55

Multiple Choice

The contribution margin:

• A)is dependent upon achieving a minimal level of output.
• B)increases as the level of output decreases.
• C)decreases as the level of output decreases.
• D)has a major effect on the present value break-even point.
• E)changes indirectly to a firm's tax rate changes.

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Definitions:

Nitrification

A microbiological process by which ammonia is oxidized to nitrate ions, an essential step in the nitrogen cycle.

Nitrogen Fixation

The process by which atmospheric nitrogen is converted into a form usable by plants, often facilitated by bacteria.

Assimilation

The process by which living organisms integrate nutrients from their environment into their own biological processes.

Assimilation

The process by which living organisms integrate nutrients from their environment to carry out biological functions.