Suppose a firm in a competitive market increases its output by 20 percent. As a result, the price of its output is likely to A. decline by 20 percent. B. remain unchanged. C. increase by less than 20 percent. D. decline by more than 20 percent.

Aaron corporation, which has only one product, has provided the following data concerning its most recent month of operations: selling price $ 102 units in beginning inventory 0 units produced 4,900 units sold 4,260 units in ending inventory 640 variable costs per unit: direct materials $ 20 direct labor $ 41 variable manufacturing overhead $ 5 variable selling and administrative expense $ 4 fixed costs: fixed manufacturing overhead $ 64,200 fixed selling and administrative expense $ 2,900 the total contribution margin for the month under variable costing is: