Question: For the forthcoming year, variable costs are budgeted to be 60% of sales value and fixed costs to be 10% of sales value. If the

For the forthcoming year, variable costs are budgeted to be 60% of sales value and fixed costs to be 10% of sales value. If the selling price increases by 10% and fixed 38 Exam Practice Kit: Fundamentals of Management Accounting costs, variable costs per unit and sales volume remain the same, the effect on contribution would be A A decrease of 5%

B No change C An increase of 15%

D An increase of 25%

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