Companies are reluctant to lower their selling prices because this lowers the ________ and even more sharply increases the ________.

Name: Companies are reluctant to lower their selling prices because this lowers the ________ and even more sharply increases the ________.
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Question

Quizplus · Accepted Answer

Lowering selling prices reduces the contribution margin, which is the difference between sales and variable costs, and increases the break-even point, which is the level of sales needed to cover all costs.

Companies Are Reluctant to Lower Their Selling Prices Because This