Using the Contribution Margin Format Income Statement, Which of the Following

question 55

Multiple Choice

Using the contribution margin format income statement, which of the following will result from an increase of one unit sold?

• A)Variable costs will increase in direct relation to the contribution margin ratio.
• B)Variable costs will decrease in direct relation to the contribution margin ratio.
• C)Every unit of product sold will decrease income by the contribution margin.
• D)Every unit of product sold will increase income by the contribution margin.

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