Assume that selling price is greater than variable cost.Now suppose the selling price and the variable cost per unit increase by $5.00.What effect would these changes have on the contribution margin in dollars and on the contribution margin ratio?
Dollar contribution margin
Contribution margin ratio
A) Increase
Increase
B) Decrease
Decrease
C) No change
No change
D) No change
Decrease
Correct Answer:
Verified
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