If the Contribution Margin Ratio Increases, the Break-Even Point in Sales

question 104

Multiple Choice

If the contribution margin ratio increases, the break-even point in sales dollars will

• A) increase.
• B) decrease.
• C) remain the same.
• D) double.

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Definitions:

Illusory Correlation

The tendency to perceive a connection between variables, typically events or behaviors, where no such relationship exists.

First Instinct Fallacy

The misconception that an individual's initial answer or gut reaction is always the correct choice, especially in the context of test-taking or decision-making.

Ironic Processing

A psychological process where attempts to suppress certain thoughts make them more likely to surface.

Counterfactual Thinking

The mental process of imagining alternative scenarios and outcomes that could have happened, but didn't.