Assume there is a reduction in the selling price and all other CVP parameters remain constant. This change will:
A)increase contribution margin
B)reduce fixed costs
C)increase variable costs
D)reduce operating income

Question

Quizplus · Accepted Answer

A reduction in the selling price, while all other parameters remain constant, will reduce the contribution margin per unit, leading to a decrease in operating income.

Assume There Is a Reduction in the Selling Price and All