An increase in sales price per unit decreases the contribution margin per unit

The break-even graph shown below represents the cost structure associated with a flexible production process and one that is fixed (less flexible)

Using the information displayed in the graph, determine the cost structures associated with the two alternative production methods.

Which one of the following is NOT an advantage to exporters of documentary credits?

A) It substitutes the creditworthiness of the bank for the importer. B) It enhances the probability the exporter will experience delays due to exchange controls. C) It requires strict adherence to the terms. D) It clearly establishes the acts the exporter must perform in order to receive payment.