Question: All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease? Select one:

All else being equal, what happens to the unit contribution margin and the contribution margin ratio if the sales price per unit decrease? Select one: O a. None of the given answers. O b. Both unit contribution margin and contribution margin ratio are unchanged. c. Unit contribution margin decreases and contribution margin ratio decreases. O d. Unit contribution margin increases while contribution margin ratio decreases. O e. Both unit contribution margin and contribution margin ratio increase. Which of the following occurs if a company experiences an increase in its fixed costs? Select one: O a. More than one of the answers would occur. b. The break-even point would decrease. O c The contribution margin would decrease O d. Net income would increase. e. The break-even point would increase
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
