Assuming That a Segment Has Both Variable Expenses and Traceable

question 98

True/False

Assuming that a segment has both variable expenses and traceable fixed expenses,an increase in sales should increase profits by an amount equal to the sales times the segment margin ratio.

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Definitions:

Increase in Demand

A situation where consumers are willing and able to purchase more of a good or service at each possible price, often depicted by a rightward shift in the demand curve.

Decrease

A reduction in size, number, value, or extent.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to market balance.

Supply Curve

An illustration that demonstrates the correlation between a good or service's price and the amount made available in a specific period.