All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases?Select one:a. None of the given answers.O b. Unit contribution margin decreases while contribution margin ratio increases.OBoth unit contribution margin and contribution margin.ratio are unchanged.Od. Both unit contribution margin and contribution manrgin ratio decrease.O e. Unit contribution margin increases and contribution margin ratio increases,

Contribution margin is the margin of profits of any enterprise which is essentially a function of…

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: O a. None of the given answers. O b. Unit contribution margin decreases while contribution margin ratio increases. Oc.Both unit contribution margin and contribution margin ratio are unchanged. O d. Both unit contribution margin and contribution margin ratio decrease. O e. Unit contribution nmargin increases and contribution margin ratio increases.

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: O a. None of the given answers. O b. Unit contribution margin decreases while contribution margin ratio increases. Oc.Both unit contribution margin and contribution margin ratio are unchanged. O d. Both unit contribution margin and contribution margin ratio decrease. O e. Unit contribution nmargin increases and contribution margin ratio increases.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 10E

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Question

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases?
Select one:
a. None of the given answers.
O b. Unit contribution margin decreases while contribution margin ratio increases.
OBoth unit contribution margin and contribution margin.ratio are unchanged.
Od. Both unit contribution margin and contribution manrgin ratio decrease.
O e. Unit contribution margin increases and contribution margin ratio increases,

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When the sales price per unit decreases, the contribution margin per unit ________. A. increases proportionately B. increases C. remains the same D DECREASES
Which of the following is true of the contribution margin ratio? a.If the contribution margin ratio increases, the price must have decreased. b.If the contribution margin ratio increases, the variable cost ratio decreases. c.It is the proportion of each sales dollar available to cover variable costs. d.If the contribution margin ratio increases, more units must be sold to break even. e.It is complementary to the net profit ratio.
If total fixed costs decrease while the sale price per unit and the variable cost per unit remain constant, the: a. contribution margin increases b. breakeven point increases c. contribution margin decreases d. breakeven point decreases
The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable cost ratio. b.Contribution margin per unit / Price. c.Total contribution margin / Total sales. d.Fixed costs / Contribution margin ratio. e.All of these choices are correct. Total contribution margin divided by total sales is the: a.contribution margin ratio. b.sales ratio. c.target income. d.margin of safety. e.indifference point.
The contribution margin ratio always increases when (you may select more thanone answer):a. Sales increase.b. Fixed costs decrease.c. Total variable costs decrease.d. Variable costs as a percent of sales decrease
Which of the following is not correct? At break-even A. Fixed costs equals contribution margin B. Profit equals zero C. Sales equal total costs D. Gross profit equals zero
The ratio of contribution margin in dollars to the selling price is the: Select one: O profit margin. O break-even point in unit sales. O contribution margin ratio. O net income
The difference, (Total Revenue - Total Cost) or [(Unit Price x Quantity Sold) - (Fixed Cost + Variable Cost)], represents, O the break-even point O the profit equation O the sales ratio O the market share O the value equation
On a cost-volume-profit graph, when the Total Cost line is higher than the Total Revenue line, the difference represents Select one: O A. a positive return on the investment O B. a net loss O C. net income O D. not enough information is presented
When the sales price per unit decreases, the contribution margin per unit A. decreases B. increases OC. increases proportionately OD. remains the same 13
elearn.squ.edu.or (Academic) al Accounting || fall20 All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? Select one: Oa. Unit contribution margin decreases while contribution margin ratio increases. b.Both unit contribution margin and contribution margin ratio are unchanged. Oc. None of the given answers. d. Unit contribution margin increases and contribution margin ratio decreases Pe. Both unit .contribution margin and contribution margin ratio decrease.
4. If Variable cost per unit decreases while selling price decreases, the new variable cost ratio in relation to the old variable cost ratio will be a. The same b. Not enough information provided c. Higher d. Higher