If the Selling Price and the Variable Cost Per Unit

question 54

Multiple Choice

If the selling price and the variable cost per unit both increase 10 percent and fixed costs do not change,what is the effect on the contribution margin per unit and the contribution margin ratio?

• A)Contribution margin per unit and the contribution margin ratio both remain unchanged.
• B)Contribution margin per unit and the contribution margin ratio both increase.
• C)Contribution margin per unit increases and the contribution margin ratio decreases.
• D)Contribution margin per unit increases and the contribution ratio remains unchanged.

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Definitions:

La Madeleine

A site known for prehistoric rock shelters and archaeological significance located in France, famed for its Paleolithic art and artifacts.

Neoclassical

A reiteration of the style and principles of Neoclassicism, emphasizing the revival and adaptation of classical themes in art, architecture, and decoration.

Grande Odalisque

A famous painting by Jean-Auguste-Dominique Ingres portraying an exoticized female figure, known for its elongated proportions and sensuality.

Mannerism

An artistic style that emerged in Europe in the late 16th century, characterized by elongated forms, exaggerated poses, and a focus on surface detail.