In margin sensitive organizations, a small increase in price can lead to:
A) a large increase in sales
B) a large increase in earnings
C) a decrease in costs
D) none of these are correct

Question

Quizplus · Accepted Answer

In margin sensitive organizations, a small increase in price can significantly boost earnings because the additional revenue from the price increase directly contributes to profit, assuming costs remain constant.

In Margin Sensitive Organizations, a Small Increase in Price Can