Assume only the specified parameters change in a cost-volume-profit analysis.If the contribution margin increases by $2 per unit,then operating profits will:

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Quizplus · Accepted Answer

The contribution margin is the amount each unit contributes to covering fixed costs and generating profit. If it increases by $2 per unit, operating profits will also increase by $2 per unit, assuming sales volume and fixed costs remain constant.

Assume Only the Specified Parameters Change in a Cost-Volume-Profit Analysis