When the sales price per unit decreases,the contribution margin per unit ________.
A) increases proportionately
B) increases
C) remains the same
D) decreases

Question

Quizplus · Accepted Answer

Contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. When the sales price per unit decreases, the contribution margin per unit also decreases because the selling price per unit, which is a component of the contribution margin per unit, has decreased.

When the Sales Price Per Unit Decreases,the Contribution Margin Per