Which of the Following Statements Is True If the Sales

question 217

Multiple Choice

Which of the following statements is true if the sales price per unit decreases while the variable cost per unit and total fixed costs remain constant?

• A)The contribution margin increases and the breakeven point decreases.
• B)The contribution margin decreases and the breakeven point decreases.
• C)The contribution margin increases and the breakeven point increases.
• D)The contribution margin decreases and the breakeven point increases.

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Definitions:

Psychological Concept

An abstract idea or theory that pertains to the mind or mental processes, forming the foundation of psychological studies.

Construct Validity

The extent to which a test or instrument measures the theoretical construct or concept it is intended to measure.

Content Validity

A measure of how accurately an assessment or measurement reflects the various aspects of the specific content it is intended to cover.

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related task.