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Charlie Shine Has Written a Self-Improvement Book Assume the Variable Production Cost and the Selling Price Were

Question 127

Multiple Choice

Charlie Shine has written a self-improvement book.The following are its pricing and cost details:  Selling price $18.00 per book  Variable cost per unit:  Production $3.50 Selling & administrative 1.90 Fixed costs:  Production $33,600 per year  Selling & administrative 15,540 per year \begin{array} { l c } \text { Selling price } & \$ 18.00 \text { per book } \\\text { Variable cost per unit: } & \\\text { Production } & \$ 3.50 \\\text { Selling \& administrative } & 1.90 \\\text { Fixed costs: } & \\\text { Production } & \$ 33,600 \text { per year } \\\text { Selling \& administrative } & 15,540 \text { per year }\end{array} Assume the variable production cost and the selling price were each increased by $0.30 per book.Which of the following would change?


A) Contribution margin ratio
B) Contribution margin per unit
C) Break-even point in units
D) Total fixed costs

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