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:

Z Score

A statistical measure illustrating the relation of a value to the mean of its group by detailing it in standard deviations from the mean.

Extreme

Relating to values that are farthest from the mean or median in a data set, often considered outliers.

Z Score

A calculation used to express the difference of a particular value from a group's mean, in terms of how many standard deviations away it is.

T Score

A standardized score that indicates how many standard deviations an element is from the mean of its distribution.