When the Total Fixed Costs Increases,the Contribution Margin Per Unit

question 161

Multiple Choice

When the total fixed costs increases,the contribution margin per unit ________.

• A) increases
• B) decreases
• C) increases proportionately
• D) remains the same

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Definitions:

Discount Rate

The fee in terms of interest that depository institutions and commercial banks pay for loans taken from the lending establishment of their regional Federal Reserve Bank.

Monetary Policy

Monetary policy involves the management of a country's money supply and interest rates by its central bank to control inflation, unemployment, and economic growth.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, influencing the bank's ability to lend.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, bank deposits, and other liquid assets.