The Total Contribution Margin Decreases If Sales Volume Remains the Same

question 88

Multiple Choice

The total contribution margin decreases if sales volume remains the same and which of the following occurs?

• A) Fixed expenses increase.
• B) Fixed expenses decrease.
• C) Variable expense per unit increases.
• D) Variable expense per unit decreases.

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Definitions:

Intent Of The Parties

The actual and mutual intention of all parties involved in a contract or legal agreement, often used to interpret or enforce the agreement.

Reasonable Price

A price that is fair and equitable, determined by the market or assessed through the terms of a contract or situation.

Contract

A legally binding agreement between two or more parties, typically entailing a promise or set of promises enforceable by law.

Unconscionable Contract

An agreement that is so unfairly one-sided that it is considered oppressive or shocks the conscience of the court.