Sample, Inc.determined its unit variable cost increased by 15%.Which one of the following will not increase as a direct result?

Name: Sample, Inc.determined its unit variable cost increased by 15%.Which one of the following will not increase as a direct result?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The contribution margin will not increase as a direct result of an increase in unit variable cost; instead, it will decrease because the contribution margin is calculated as sales price minus variable costs.