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

question 121

Multiple Choice

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

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

---

Definitions:

SST

Total Sum of Squares, an overall measure of the variation within a dataset relative to a mean value.

Least Squares Estimate

A method of estimating the parameters in a statistical model by minimizing the sum of squared differences between observed and predicted values.

Slope

The measure of the steepness or incline of a line, often calculated as rise over run in the coordinate plane.

Dependent Variable

A variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.