Question: All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases? A Both

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit increases?

A Both unit contribution margin and contribution margin ratio increase.

B Unit contribution margin increases while contribution margin ratio decreases.

C Both unit contribution margin and contribution margin ratio decrease.

D Unit contribution margin decreases while contribution margin ratio increases.

The profit equation is:

A (Unit price Q) - (Unit variable costs Q) + Total fixed costs = Profit.

B (Unit price Q) - (Unit variable costs Q) - Total fixed costs = Profit.

C (Unit price Q) + (Unit variable costs Q) + Total fixed costs = Profit.

D (Unit price - Unit variable costs - Total fixed costs) Q = Profit.

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