Suppose the Selling Price Per Unit Increased from $5

question 36

Multiple Choice

Suppose the selling price per unit increased from $5.00 to $6.00 per ticket. What effect would this have on the cost volume profit analysis?

• A) The contribution margin would increase.
• B) The contribution margin would decrease.
• C) The break-even point in units would decrease.
• D) The contribution margin would increase AND the break-even point in units would decrease.

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Definitions:

Committee of Correspondence

Groups formed in the American colonies to maintain communication lines and coordinate actions against British policies before the American Revolution.

Colonists' Rights

The rights claimed by the inhabitants of colonies, especially concerning self-governance, freedom from external interference, and legal equality.

Resistance Movement

A group or collection of individuals who actively oppose an occupying force or the policies of an existing government, typically through various forms of noncompliance and sabotage.

Coercive Acts

Legislation passed by the British parliament intended to reassert control over the American colonies by closing the Boston Harbor and removing Massachusetts' governmental autonomy.