There is an important relation between contribution margin and profit.Which of the following statements is not true?
A)As the number of units sold rises,profit increases by the variable cost per unit.
B)As the number of units sold increases,total contribution margin increases,but fixed costs remain the same.
C)As the number of units sold rises,profit increases by the additional contribution margin per unit.
D)As the number of

Question

Quizplus · Accepted Answer

The profit increases by the contribution margin per unit, not the variable cost per unit, as the number of units sold rises.

There Is an Important Relation Between Contribution Margin and Profit