What Is the Result When the Contribution Margin Ratio Increases

question 7

Multiple Choice

What is the result when the contribution margin ratio increases?

• A) break-even point decreases
• B) variable cost ratio increases
• C) fixed costs will decrease
• D) (variable cost ratio + contribution margin ratio) will be greater than 100%

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Definitions:

Intercalated Discs

Specialized structures in cardiac muscle cells that facilitate cell-to-cell communication and contraction through gap junctions and desmosomes.

Terminal Cisternae

Enlarged areas of the sarcoplasmic reticulum around the muscle's transverse tubules involved in calcium storage and release.

T-tubules

Tubular extensions of the cell membrane into muscle cells, facilitating rapid transmission of action potentials to ensure efficient contraction.

Desmosomes

Specialized cell structures that function as anchors, attaching cells together within tissues like the skin and heart muscle.