Question: Using the contribution margin format income statement, which of the following will result from an increase of one unit sold? Variable costs will increase in

Using the contribution margin format income statement, which of the following will result from an increase of one unit sold?

Variable costs will increase in direct relation to the contribution margin ratio.

Variable costs will decrease in direct relation to the contribution margin ratio.

Every unit of product sold will decrease income by the contribution margin.

Every unit of product sold will increase income by the contribution margin.

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!