Which of the following are inversely related to variable costs per unit?
I.contribution margin per unit
II.number of units sold
III.operating cash flow per unit
IV.net profit per unit
A)I and II only
B)III and IV only
C)II, III, and IV only
D)I, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Variable costs per unit are inversely related to contribution margin per unit, operating cash flow per unit, and net profit per unit. As variable costs per unit decrease, these metrics typically increase, assuming other factors remain constant. The number of units sold is not directly inversely related to variable costs per unit in the same manner.

Which of the Following Are Inversely Related to Variable Costs