Question: (More) (less) volume is required to offset a given price (decrease) (increase) when the firms contribution margin is (low) (high) as opposed to (high) (low).

(More) (less) volume is required to offset a given price (decrease) (increase) when the firms contribution margin is (low) (high) as opposed to (high) (low).

As a firm (decreases) (increases) its prices more and more, demand would have to become (more) (less) elastic to hold the firms total contribution margin constant.

A price of $10 with a ($6) ($4) variable cost would result in a (60%) (40%) contribution margin.

An actual demand elasticity of (-6) (-2) when the breakeven` demand elasticity is -4 would be a (good) (bad) thing in the case of a price (increase) (decrease).

A firms total contribution margin would go (up) (down) if actual demand was (greater) (less) than the breakeven volume.

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