There Is an Important Relation Between Contribution Margin and Profit

question 112

Multiple Choice

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 rises,profit increases by the variable cost per unit.
• B)As the number of units sold increases,total contribution margin increases,but fixed costs remain the same.
• C)As the number of units sold rises,profit increases by the additional contribution margin per unit.
• D)As the number of

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Definitions:

Psychological Contract

The unwritten set of expectations between an employer and an employee regarding mutual obligations.

Unrealistically Low Expectations

Expectations that are set significantly below a realistic assessment of achievable outcomes, often leading to underperformance or missed opportunities.

Psychological Contract Breach

The perception that an employer has failed to fulfill one or more unwritten expectations of the employment relationship.

Unrealistically High

Describes expectations or objectives that are excessively beyond realistic reach or achievement.