If Fixed Costs Related to a Product Increase,while Variable Costs

question 10

Multiple Choice

If fixed costs related to a product increase,while variable costs and sales price remain constant,what will happen to the contribution margin?

• A)It will not change.
• B)It will increase.
• C)It will decrease.
• D)It will decrease to zero.

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Definitions:

Population Means

The average value of a characteristic in a population, and a parameter that is often estimated from sample data.

ANOVA

Analysis of Variance, a statistical method used to compare means of three or more samples, testing the hypothesis that all samples are taken from populations with the same mean.

Equal Variances

A statistical assumption that the variances of the items being compared are the same across all levels or groups.

ANOVA

ANalysis Of VAriance, a statistical method used to compare the means of three or more samples to find out if at least one is significantly different from the others.