All else equal,the contribution margin must increase as:
A)both the sales price and variable cost per unit increase.
B)the fixed cost per unit declines.
C)the variable cost per unit declines.
D)sales price per unit declines.
E)the sales price minus the fixed cost per unit increases.

Question

Quizplus · Accepted Answer

Contribution margin is the difference between the sales price and the variable cost per unit. As the variable cost per unit decreases, the contribution margin will increase. All other options listed would cause a decrease in the contribution margin.

All Else Equal,the Contribution Margin Must Increase As