If Selling Price Per Unit and Sales Volume Remain the Same

question 70

Multiple Choice

If selling price per unit and sales volume remain the same while variable costs per unit decrease and total fixed costs decrease, which of the following is false:

• A)Contribution margin ratio will increase.
• B)Contribution margin per unit will increase.
• C)Net operating income will increase.
• D)Net operating income will decrease.

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Definitions:

Trend Percentage

A financial analysis technique that compares certain line items in financial statements over different periods to identify patterns and growth rates.