If Both the Variable Cost Per Unit and the Selling

question 3

Multiple Choice

If both the variable cost per unit and the selling price per unit increase, the new contribution margin ratio in relation to the old contribution margin ratio will be:

• A) Lower.
• B) Higher.
• C) Unchanged.
• D) Cannot determine with the information given.

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Definitions:

Repairing

The process of restoring equipment, machinery, or property to a state where it can function effectively again.

Comparable Used Van

A used van that is similar in age, condition, mileage, and features to another van, typically used for benchmarking purposes.

Financially Better

A general term referring to an improved financial condition or status of an individual, company, or economy.

Constrained Resource

A limited resource that restricts a company's ability to produce goods, offer services, or achieve its objectives.