All Else Constant,as the Variable Cost Per Unit Increases,the

question 49

Multiple Choice

All else constant,as the variable cost per unit increases,the:

• A) contribution margin decreases.
• B) sensitivity to fixed costs decreases.
• C) degree of operating leverage decreases.
• D) operating cash flow increases.
• E) net profit increases.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by the rise in Gross Domestic Product (GDP).

Global Trade Flows

The movement of goods and services across international borders, reflecting the interconnectedness of global economies.

Health Care Costs

The total expenditures for services and products related to the treatment and prevention of illness or the maintenance of health.

Labor Pool

The supply of available workers in a particular area or from a specific industry or occupation.