What Happens to the Contribution Margin If Fixed Expenses Decrease

question 110

Multiple Choice

What happens to the contribution margin if fixed expenses decrease while variable cost per unit remain constant.

• A)Contribution margin will be unchanged.
• B)Contribution margin will be higher.
• C)Contribution margin will be lower.
• D)Cannot determine the change.

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Definitions:

Dry Mucous Membranes

A condition characterized by the lack of adequate moisture in the mucous membranes, often indicating dehydration or other health issues.

Fluid Restriction

A medical directive to limit the amount of fluids consumed by a patient, often used in conditions where fluid balance is critical.

Fluid Volume Excess

A medical condition characterized by too much fluid in the blood, leading to swelling and other potential health issues.

Third Space Syndrome

A shift of body fluid into a space from which it is not easily obtained.