Brasher Company manufactures and sells a single product that has a positive contribution margin.If the selling price and variable expenses both decrease by 5% and fixed expenses do not change,then what would be the effect on the contribution margin per unit and the contribution margin ratio?
$\begin{array}{|l|l|l|}
\hline & \begin{array}{l}
\text { Contribution margin per } \
\text { unit }
\end{array} & \text { Contribution margin ratio } \
\hline \text { A) } & \text { Decrease } & \text { Decrease } \
\hline \text { B) } & \text { Decrease } & \text { No change } \
\hline \text { C) } & \text { No change } & \text { Decrease } \
\hline \text { D) } & \text { No change } & \text { No change } \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

The Answer is B

Brasher Company Manufactures and Sells a Single Product That Has