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NUBD Co. manufactures and sells a single product. If the selling price and variable costs both decrease by 5% and fixed costs do not change, then * O the unit contribution margin will decrease and the contribution margin ratio will decrease O the unit contribution margin will decrease and the contribution margn ratio will remain the same O the unit contribution margin will remain unchanged and contribution margin ratio will decrease O neither the unit contribution margin nor the contribution margin ratio will change

NUBD Co. manufactures and sells a single product. If the selling price and variable costs both decrease by 5% and fixed costs do not change, then * O the unit contribution margin will decrease and the contribution margin ratio will decrease O the unit contribution margin will decrease and the contribution margn ratio will remain the same O the unit contribution margin will remain unchanged and contribution margin ratio will decrease O neither the unit contribution margin nor the contribution margin ratio will change

FINANCIAL ACCOUNTING
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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NUBD Co. manufactures and sells a single product. If the selling price and variable costs both decrease by 5% and fixed costs do not change, then * O the unit contribution margin will decrease and the contribution margin ratio will decrease O the unit contribution margin will decrease and the contribution margn ratio will remain the same O the unit contribution margin will remain unchanged and contribution margin ratio will decrease O neither the unit contribution margin nor the contribution margin ratio will change
Transcribed Image Text:NUBD Co. manufactures and sells a single product. If the selling price and variable costs both decrease by 5% and fixed costs do not change, then * O the unit contribution margin will decrease and the contribution margin ratio will decrease O the unit contribution margin will decrease and the contribution margn ratio will remain the same O the unit contribution margin will remain unchanged and contribution margin ratio will decrease O neither the unit contribution margin nor the contribution margin ratio will change
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