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

Bubble 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 unit will remain unchanged.

Which of the following statements is correct?

a) The total will decrease and the total contribution will decrease

b) The total revenue will decrease and the total contribution will increase

c) The total revenue will increase and the total contribution will increase

d) The total revenue will increase and the total contribution will decrease

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