Question: Attachted: Freame plc determines its selling prices by adding a mark up of 100% to the variable cost per unit. If the selling price is

Attachted:

Freame plc determines its selling prices by adding a mark up of 100% to the variable cost per unit. If the selling price is increased by 50%, the quantity sold each period is expected to reduce by 40% but the variable cost per unitwill remain unchanged. Which of the following statements is correct? 0 The total revenue will increase and the total contribution will increase 0 The total revenue will increase and the total contribution will decrease O The total will decrease and the total contribution will decrease O The total revenue wrll decrease and the total contribution will increase

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