There Is an Important Relation Between Contribution Margin and Profit

question 153

Short Answer

There is an important relation between contribution margin and profit.Which of the following statements is not true?
A) As the number of units sold increases, total contribution margin increases, but fixed costs remain the same.
B) As the number of units sold rises, profit increases by the additional contribution margin per unit.
C) As the number of units sold decreases, total contribution margin decreases, but fixed costs remain the same.
D)All of these ans choices are correct.

• A) As the number of units sold increases, total contribution margin increases, but fixed costs remain the same.
• B) As the number of units sold rises, profit increases by the additional contribution margin per unit.
• C) As the number of units sold decreases, total contribution margin decreases, but fixed costs remain the same.
• D)All of these ans choices are correct.

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Definitions:

Null Hypothesis

A statistical hypothesis that proposes there is no significant difference or effect within the specified population.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, asserting there is a significant difference or effect.

Type I Error

The mistaken dismissal of a correct null hypothesis, often referred to as a "false positive."

Null Hypothesis

A statement or premise in statistics that implies no significant effect or relationship between variables, serving as a default position until evidence suggests otherwise.