Question

Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then:

Contribution margin per unit - Contribution margin ratio - Break-even in units
A) Increases - Increases - Decreases
B) No change - No change - No change
C) No change - Increases - No change
D) Increases - No change - Decreases

Answer 1

D. Increases - No change - Decreases

Step-by-step explanation:

Contribution margin per unit - Increses

Contribution margin ratio - No Change

Break-even in units - Decreases