All else constant,as the variable cost per unit increases,the:

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As variable cost per unit increases, contribution margin decreases. This is because contribution margin is calculated by subtracting variable costs from revenue. If variable costs increase, there is less revenue available to cover fixed costs and ultimately contribute to net profit. The degree of operating leverage and sensitivity to fixed costs are not affected by changes in variable costs per unit. Operating cash flow may increase or decrease depending on the situation, but it is not directly tied to variable costs per unit.

All Else Constant,as the Variable Cost Per Unit Increases,the