Suppose the Contribution Margin Ratio Increases

question 35

Multiple Choice

Suppose the contribution margin ratio increases.What will be the effect on the break-even point in sales dollars?

• A)The dollar value will increase.
• B)The dollar value will decrease.
• C)The dollar value will remain the same.
• D)The dollar value will double.

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Definitions:

Residential Tenancy

A legal agreement between a landlord and tenant for the rental of a living space, such as a house or apartment.

Absolute Right

A legal right that is complete and not contingent upon external conditions or restrictions.

Sublet

The act of leasing out a rented property by the original tenant to a third party.

Liable

Legally responsible or obligated to make amends for actions, damages, or debts.