If the sales price and the variable cost per unit both increase by 12% and the fixed cost does not change, the effect on the contribution margin per unit and the contribution margin ratio is that the contribution margin per unit and O the contribution margin ratio both remain unchanged. the contribution margin per unit and the contribution margin ratio both increase. the contribution margin per unit O increases and the contribution margin ratio remains unchanged. the contribution margin per unit and O the contribution margin ratio decreases. None of the above

If the sales price and the variable cost per unit both increase by 12% and the fixed cost does not change, the effect on the contribution margin per unit and the contribution margin ratio is that the contribution margin per unit and O the contribution margin ratio both remain unchanged. the contribution margin per unit and the contribution margin ratio both increase. the contribution margin per unit O increases and the contribution margin ratio remains unchanged. the contribution margin per unit and O the contribution margin ratio decreases. None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If the sales price and the
variable cost per unit both
increase by 12% and the fixed
cost does not change, the
effect on the contribution
margin per unit and the
contribution margin ratio is that
the contribution margin per unit and
the contribution margin ratio both
remain unchanged.
the contribution margin per unit and
the contribution margin ratio both
increase.
the contribution margin per unit
increases and the contribution
margin ratio remains unchanged.
the contribution margin per unit and
the contribution margin ratio
decreases.
None of the above

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