Assume That Selling Price Is Greater Than Variable Cost

question 61

Multiple Choice

Assume that selling price is greater than variable cost. Now suppose the selling price and the variable cost per unit increase by $5.00. What effect would these changes have on the contribution margin in dollars and on the contribution margin ratio?

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Definitions:

Visible Minority

Outdated term used primarily in Canada by Statistics Canada to refer to a category of persons who are non-Caucasian in race or non-white in color and who do not report being Indigenous.

Canadian-Ness

The qualities, characteristics, or cultural elements that are considered distinctly Canadian.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Guaraní

A group of culturally and linguistically related indigenous peoples in South America, primarily found in Paraguay and parts of the surrounding countries.