To Explain Why Two Business Segments Have Different Contribution Margin

question 29

True/False

To explain why two business segments have different contribution margin ratios,take the total amounts and expand them into their two components-units and amount per unit-by dividing the totals by the number of units.

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Definitions:

Duress

Duress involves compelling someone to act against their will by using threats, force, or coercion in the context of making a contract.

Mutual Mistake

A situation in legal contracts where all parties involved have misconceptions about a vital fact at the time of agreement.

Disclaimer

A statement that denies something, especially responsibility.

Negligent Misrepresentation

A false statement made carelessly that induces another party to enter into a contract, resulting in harm or loss.