An Increase in Selling Price Per Unit Decreases the Contribution

question 75

True/False

An increase in selling price per unit decreases the contribution margin per unit.

---

Definitions:

Net Income

A company's remaining income after deducting all expenses and taxes from its revenue.

Accounts Receivable Turnover

Accounts receivable turnover is a financial ratio that measures how effectively a company is collecting on its credit sales by comparing net credit sales with the average accounts receivable for a period.

Financial Statement Analysis

Financial statement analysis involves evaluating the financial statements of a company to assess its performance and make informed business decisions.

IRS Audit

A formal examination by the Internal Revenue Service to verify the accuracy of a taxpayer's returns and financial records.