If the Sale Price Per Unit Decreases and Variable Costs

question 80

Multiple Choice

If the sale price per unit decreases and variable costs remain the same,what will be the effect on the contribution margin ratio?

• A)It will increase.
• B)It will decrease.
• C)It will remain the same.
• D)It is impossible to determine with the given information.

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Definitions:

Cattell

Raymond Cattell, a psychologist known for his work in personality, intelligence theory, and factor analysis.

Social Desirability

The tendency of respondents to answer questions in a manner that will be viewed favorably by others.

Discriminant Validity

A form of validity that ensures a test measures what it is supposed to measure, and not something else, by demonstrating little correlation with variables from which it should differ.

Self-report Inventories

Psychological tests in which individuals provide subjective evaluations or reports of their own behavior, feelings, or attitudes.