What Is the Result When the Contribution Margin Ratio Increases

question 118

Multiple Choice

What is the result when the contribution margin ratio increases?

• A)The variable cost ratio decreases.
• B)The break-even point increases.
• C)The fixed costs decrease.
• D)The price decreases.

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Definitions:

General Welfare Clause

Refers to a section of the United States Constitution empowering Congress to pass laws that are for the good of the country as a whole.

Supremacy Clause

A provision in the United States Constitution that establishes federal law as the supreme law of the land, taking precedence over state laws.

Incorporation Doctrine

A legal principle that applies the Bill of Rights to the states by interpreting the 14th Amendment's Due Process Clause as encompassing those rights.

Bill of Rights

The first ten amendments to the U.S. Constitution, ratified in 1791, guaranteeing essential rights and liberties to American citizens.