There Is an Important Relation Between Contribution Margin and Profit

question 140

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 increases,total contribution margin and fixed costs increase.
• D)As the number of

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Definitions:

Objectivity

Refers to the practice of being impartial, fair, and unbiased in judgment or analysis.

Preoperational

A stage in Jean Piaget's theory of cognitive development (ages 2 to 7) where children start to use language and think symbolically but lack the ability for abstract thinking.

Transform Information

The process of changing or converting data and information into a different format or structure for understanding or analysis.

Operate

To function or work in a particular manner or context, often referring to machines, systems, or procedures.