Tower Company Manufactures and Sells a Single Product with a Positive

question 4

Multiple Choice

Tower Company manufactures and sells a single product with a positive contribution margin.If the selling price and the variable cost per unit both increase 5% and fixed costs do not change,what is the effect on the contribution margin per unit and the contribution margin ratio? $$\begin{array} { | c | c | c | } \hline & \text { Contrbution margin per unit } & \text { Contribution margin ratio } \\\hline \text { A. } & \text { No change } & \text { No change } \\\hline \text { B. } & \text { Increase } & \text { Increase } \\\hline \text { C. } & \text { Increase } & \text { No change } \\\hline \text { D. } & \text { Increase } & \text { Decrease } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Sheet Name

The name given to an individual worksheet within a spreadsheet application.

Growth Trend

An observable pattern or direction of growth, expansion, or development in economic, business, or data metrics over a period of time.

Profit

The financial gain made from a transaction or operation, calculated by subtracting total expenses from total revenues.

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