Question: If selling price per unit and unit variable cost increase by 5% and fixed cost remain the same, which CVP relation is correct? Contribution Margin

If selling price per unit and unit variable cost increase by 5% and fixed cost remain the same, which CVP relation is correct?

Contribution Margin Per Unit

Break-Even Units

Overall Profit

A.

Decrease

Increase

Increase

B.

Decrease

Decrease

Decrease

C.

Increase

Increase

Increase

D.

Increase

Decrease

Increase

E.

Decrease

Increase

Decrease

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