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

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: a. Both unit contribution margin and contribution margin ratio increase. b. Unit contribution margin increases while contribution margin ratio decreases. c. Unit contribution margin decreases while contribution margin ratio increases. d. None of the given answers. e. Both unit contribution margin and contribution margin ratio are unchanged. At the breakeven point Select one: a. Fixed costs will be equal contribution margin minus variable costs b. Sales will be equal to fixed costs plus target profit c. Sales will be equal to variable costs plus zero target profit plus fixed costs d. Fixed costs will be equal to variable costs e. Sales will be equal to variable costs minus fixed costs

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!