When the Total Fixed Costs Increases,the Contribution Margin Per Unit

question 161

Multiple Choice

When the total fixed costs increases,the contribution margin per unit ________.

• A) increases
• B) decreases
• C) increases proportionately
• D) remains the same

---

Definitions:

Intersect

The point at which two or more lines or paths cross each other.

Substitution Effect

The change in consumption of goods that occurs when a price change for one good makes another good more or less attractive as a substitute.

Price Decrease

A reduction in the cost of goods or services, often resulting from factors like increased competition, lower production costs, or decreased demand.

Consumption

The use of goods and services by households.