An increase in contribution margin per unit can be created by an ________ in sales price per unit and a ________ in variable costs per unit.
A) increase, decrease
B) decrease, increase
C) increase, increase
D) decrease, decrease

Question

Quizplus · Accepted Answer

Contribution margin per unit increases when the sales price per unit increases (leading to higher revenue per unit) and when variable costs per unit decrease (reducing the costs associated with each unit sold), thereby widening the margin.

An Increase in Contribution Margin Per Unit Can Be Created