Debbie's Donut Shop has been the only donut shop in town. However, after Barry's Breakfast Treats opened up last month, Debbie's sales have dropped. Debbie decides to cut the selling price of her delicious donuts. The decrease in selling price will result in: a. A reduction in the unit contribution margin.
B) An increase in the unit contribution margin.
C) A reduction in the unit variable costs.
D) An increase in the unit variable costs.
E) A reduction in fixed costs.

Question

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The Answer of Debbie's Donut Shop has been the only donut shop in town. However, after Barry's Breakfast Treats opened up last month, Debbie's sales have dropped. Debbie decides to cut the selling price of her delicious donuts. The decrease in selling price will result in: a. A reduction in the unit contribution margin.
B) An increase in the unit contribution margin.
C) A reduction in the unit variable costs.
D) An increase in the unit variable costs.
E) A reduction in fixed costs.

Debbie's Donut Shop Has Been the Only Donut Shop in Town