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

Calculate financial ratios and interpret their implications for a company's financial health.

Evaluate a company's financial performance and position using comparative financial statements.

Identify and analyze trends in financial data over time.

Apply financial analysis techniques to make informed decisions.

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