If the Selling Price Per Unit and the Variable Cost

question 75

Short Answer

If the selling price per unit and the variable cost per unit both increase by 5%, what is the effect on the contribution margin per unit and on the contribution margin ratio? $\begin{array}{ll}\text { Contribution margin per unit }&\text { Contribution margin ratio }\\\hline\text { a) Increase } & \text { Increase } \\\text { b) Increase } & \text { No effect } \\\text { c) Decrease } & \text { No effect } \\\text { d) Decrease } & \text { Increase }\end{array}$

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Definitions:

Claustrophobia

An anxiety disorder characterized by an extreme or irrational fear of confined spaces.

Epidemiology

The examination and investigation into the spread, configuration, and causes of health and disease states within specific population groups.

Aetiology

Aetiology refers to the study of the causes or origins of diseases or disorders.

Psychobiology

The branch of science that explores the biological foundations of behavior, emotions, and mental processes.