Assuming a company has net income,with the sale of each additional unit,net income will increase by the ___________.

Question

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The contribution margin per unit is the amount of net income that is earned from each additional unit sold, after variable expenses have been covered. Therefore, as each additional unit is sold, the net income will increase by the contribution margin per unit. The other options (A, C, and D) do not directly impact net income with each additional unit sold.

Assuming a Company Has Net Income,with the Sale of Each