If the Sale Price Per Unit Decreases and Variable Costs

question 255

Multiple Choice

If the sale price per unit decreases and variable costs remain the same, what will be the effect on the contribution margin ratio?

• A) It will increase.
• B) It will decrease.
• C) It will remain the same.
• D) It is impossible to determine with the given information.

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Definitions:

Furthering Responses

Techniques used in communication to encourage deeper discussion or elaboration on a topic.

Reflecting Content

Reflecting content is a communication technique used in counseling and therapy involving repeating or paraphrasing what a client has said to ensure understanding and validation of their feelings and thoughts.

Empathizing

The act of understanding and sharing the feelings of another, putting oneself in their shoes.

Intellectualizing

A defense mechanism where reasoning is used excessively to avoid experiencing emotional stress.