Assuming No Change in Sales Volume, an Increase in Company's

question 51

Multiple Choice

Assuming no change in sales volume, an increase in company's per-unit contribution margin would:

• A) increase income.
• B) decrease income.
• C) have no effect on income.
• D) increase fixed costs.
• E) decrease fixed costs.

Understand the concept of sunk costs and their irrelevance in future decision-making.

Understand the factors affecting decision-making for accepting special orders and managing capacity.

Apply the relative sales value method to allocate joint costs between products.

Analyze cost and revenue information to make profit-maximizing decisions for product modifications or sales strategies.

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