Assume Only the Specified Parameters Change in a CVP Analysis

question 166

Multiple Choice

Assume only the specified parameters change in a CVP analysis. The contribution margin percentage increases when ________.

• A) total fixed costs increase
• B) total fixed costs decrease
• C) variable costs per unit increase
• D) variable costs per unit decrease

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Definitions:

Labor Productivity

A measure of the economic output produced per unit of labor input.

Real GDP Per Capita

A measure that reflects the average economic output per person, adjusted for inflation, providing insight into the standard of living across different countries or regions.

Employment Growth Rate

The rate at which job creation increases in an economy over a specified period of time.

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period, expressed as a fraction of the initial population.