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:

Integumentary System

The organ system comprised of the skin and its appendages, serving to protect the body from various kinds of damage, such as loss of water or abrasion from outside.

Infections

The invasion and multiplication of microorganisms such as bacteria, viruses, and fungi in the body, which can cause illness and disease.

Hormones

Chemical messengers produced by glands in the endocrine system that regulate processes such as growth, metabolism, and reproductive functions.

Veins

Blood vessels that carry blood toward the heart, typically containing valves to prevent backflow.