Question: A supplier has just informed a company about a decrease in the cost per unit, although the number of units sold, the unit selling price,

A supplier has just informed a company about a decrease in the cost per unit, although the number of units sold, the unit selling price, and the fixed costs remain unchanged. What will be the effect of these changes?

a.) Contribution margin will increase.

b.) Revenue will decrease.

c.) Profit before tax will decrease.

d.) Fixed costs will increase.

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