What will happen to the contribution margin if fixed costs related to a product increase while variable costs and sales price remain constant?

Question

Quizplus · Accepted Answer

If fixed costs related to a product increase while variable costs and sales price remain constant, the contribution margin will decrease. This is because the contribution margin is calculated by subtracting variable costs from the sales price, and then subtracting fixed costs from the resulting number. If fixed costs increase, the resulting contribution margin will be lower.

What Will Happen to the Contribution Margin If Fixed Costs