When the total fixed costs decreases,the contribution margin per unit ________.
A) increases
B) decreases
C) remains the same
D) decreases proportionately

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the selling price per unit minus the variable cost per unit. It does not change with the total fixed costs, as it does not include fixed costs in its calculation.

When the Total Fixed Costs Decreases,the Contribution Margin Per Unit