When the total fixed costs increase,the contribution margin per unit ________.
A) increases
B) decreases
C) increases proportionately
D) remains the same

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as the sales price per unit minus the variable cost per unit. It does not change with the total fixed costs, as it does not include any fixed cost components.

When the Total Fixed Costs Increase,the Contribution Margin Per Unit