All Else Equal,the Contribution Margin Must Increase As

question 53

Multiple Choice

All else equal,the contribution margin must increase as:

• A)both the sales price and variable cost per unit increase.
• B)the fixed cost per unit declines.
• C)the variable cost per unit declines.
• D)sales price per unit declines.
• E)the sales price minus the fixed cost per unit increases.

---

Definitions:

Price Elasticity of Demand

An evaluation of how the requested quantity of a good is influenced by modifications in its cost.

Price Coefficient

A numerical value that represents the degree to which price affects demand or supply for a good or service.

Primary Copper

Copper in its metallic form as found in nature, typically extracted via mining and used as a raw material for further refinement and use in various applications.

Supply Curves

depict how the quantity supplied of a commodity varies as its price changes, assuming other factors remain constant.