If unit variable cost is reduced and selling price and fixed cost remain the same, then:

Name: If unit variable cost is reduced and selling price and fixed cost remain the same, then:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When unit variable cost is reduced while selling price and fixed costs remain the same, the contribution margin per unit increases. This means that each unit sold generates more profit, leading to an increase in overall profit, assuming sales volume remains constant or increases.

If Unit Variable Cost Is Reduced and Selling Price and Fixed