If Contribution Margin Decreases by $1 Per Unit, Then Operating

question 155

True/False

If contribution margin decreases by $1 per unit, then operating profits will increase by $1 per unit.

---

Definitions:

Authorized Representative

An individual or entity legally empowered to act on behalf of another person or organization.

Legal Entity

A legal entity refers to any company or organization that has legal rights and obligations, including the capacity to enter into contracts and loans, sue and be sued.

Partnership

A business structure where two or more individuals share ownership, as well as the profits and liabilities of the business.

Alternate Payees

Individuals or entities designated to receive payments on behalf of the original payee, often seen in legal settlements or divorce decrees involving support payments.