When Contribution Margin Per Unit Increases

question 14

Multiple Choice

When contribution margin per unit increases:

• A)break-even output remains the same.
• B)break-even output increases.
• C)break-even output decreases.
• D)fixed costs decrease.

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Definitions:

Satisfaction Clauses

Contractual provisions requiring one party's performance to meet the subjective approval of another, often related to quality or aesthetics.

Objective Standard

A universal, unbiased criterion used to evaluate actions, situations, or decisions, not influenced by personal feelings or opinions.

Subjective Test

An assessment criteria based on personal opinions, feelings, and perspectives, rather than objective, measurable standards.

Material Breach

A significant failure to perform one's contractual obligations, which justifies the other party's termination of the contract.