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Assuming the Selling Price Is Greater Than the Total Cost

Question 21

Multiple Choice

Assuming the selling price is greater than the total cost per unit,the contribution margin must increase as:


A) both the sales price and variable cost per unit increase.
B) the sales price per unit declines.
C) the sales price minus the fixed cost per unit increases.
D) the gap between the sales price and the variable cost per unit widens.
E) the fixed cost per unit declines.

Correct Answer:

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