When the variable cost per unit decreases,the contribution margin on each unit sold also decreases.

Question

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When the variable cost per unit decreases, the contribution margin on each unit sold actually increases. This is because the contribution margin is calculated by subtracting the variable cost per unit from the selling price per unit. If the variable cost per unit decreases, the difference between the selling price and the variable cost per unit (i.e. the contribution margin) will increase.

When the Variable Cost Per Unit Decreases,the Contribution Margin on Each