Which action has a greater effect on the unit contribution margin : (1) Increasing the unit selling
Question:
(1) Increasing the unit selling price by 10% or
(2) Reducing the unit variable cost by 10%?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Unit contribution margin equals unit selling price less unit var...View the full answer
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Related Book For 
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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