Question: Explain your answer, thanks Freame plc determines its selling prices by adding a mark up of 100% to the variable cost per unit, If the

Explain your answer, thanks

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 unit will remain unchanged. Which of the following statements is correct? 0 The toiai revenue will increase and the total contribution will decrease O The total revenue will decrease and the total contribution will increase 0 The total revenue will increase and the total contribution will increase 0 The total wiil decrease and the total contribution will decrease

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