Garth Company Sells a Single Product

question 49

Multiple Choice

Garth Company sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then

• A)Contribution margin per unit - INCREASES; Contribution margin ratio - INCREASES; Break-even in Units - DECREASES
• B)Contribution margin per unit - NO CHANGE; Contribution margin ratio - NO CHANGE; Break-even in Units - NO CHANGE
• C)Contribution margin per unit - NO CHANGE; Contribution margin ratio - INCREASES; Break-even in Units - NO CHANGE
• D)Contribution margin per unit - INCREASES; Contribution margin ratio - NO CHANGE; Break-even in Units - DECREASES

---

Definitions:

Classical Conditioning

A reinforcement process where two stimuli are regularly conjoined; the response that is initially elicited by the second stimulus is later elicited by the first stimulus singularly.

Unconditioned Response

Unconditioned response is a naturally occurring reaction to an unconditioned stimulus without the need for prior learning.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is associated with an unconditioned stimulus.

Secondary Conditioner

A stimulus that becomes reinforcing through its association with a primary reinforcer.