There Is an Important Relation Between Contribution Margin and Profit

question 115

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 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)As the number of

---

Definitions:

Social Exchange Theory

A conceptual framework suggesting that social behavior is the result of an exchange process aiming to maximize benefits and minimize costs.

Norm Of Reciprocity

A social expectation that people will respond to each other in kind, returning benefits for benefits and responding with either indifference or hostility to harms.

Transformational Leaders

Leaders who inspire and motivate their followers by presenting a compelling vision of the future, fostering an environment of intellectual stimulation, and demonstrating personal attention to each member's needs and development.

Consideration

The thoughtfulness and sensitivity shown towards others, often part of leadership qualities that include respect and empathy.