East Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio? 
Definitions:
Labour Efficiency Variance
A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected to produce a certain level of output.
Production Manager
The person responsible for overseeing the production process and ensuring that manufacturing runs smoothly and efficiently.
Management By Exception
A management system in which standards are set for various activities, with actual results compared to these standards. Significant deviations from standards are flagged as exceptions.
Actual
The real, measured or observed value of a quantity or cost, as opposed to estimated or budgeted figures.
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