If a Company's Variable Costs Per Unit Were to Increase

question 22

Multiple Choice

If a company's variable costs per unit were to increase but its unit selling price stays constant,the effect on a profit-volume graph would be that the

• A)contribution margin line would shift upward parallel to the present line.
• B)contribution margin line would shift downward parallel to the present line.
• C)slope of the contribution margin line would be pronounced (steeper).
• D)slope of the contribution margin line would be less pronounced (flatter).

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