Question: 2) Gooch plc operates a marginal costing system. For the upcoming year, variable costs are budgeted to be 60% of sales value and fixed

2) Gooch plc operates a marginal costing system. For the upcoming year,

2) Gooch plc operates a marginal costing system. For the upcoming year, variable costs are budgeted to be 60% of sales value and fixed costs are budgeted to be 10% of sales value. If the company increases its selling prices by 10% but keeps the fixed costs, variable costs per unit and sales volume unchanged, by what percentage will the company's contribution change and whether it will increase or decrease? (LO2) (BT Level: Apply) (5 Marks)

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