What effect will each of the following have on a products unit contribution margin ? In each
Question:
a. The business raises the selling price of the product.
b. The prices of some raw materials used in manufacturing decrease.
c. The local regional government increases the business’s property tax.
d. The company’s president is given a raise.
e. The production workers receive a raise in their hourly rate.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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a Since CM S VC CM will increase if S is increased b Raw materials are part ...View the full answer
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