Final answer:
A change in volume impacts the total contribution margin since it affects the total sales revenue and variable costs. The total contribution margin will change proportionally with volume if the selling price per unit is constant. Marginal cost, calculated as the change in total cost divided by the change in quantity, is also affected by volume changes.
Step-by-step explanation:
The question is about how a change in volume impacts the total contribution margin. The contribution margin is the difference between total sales revenue and total variable costs. When volume changes, it directly affects both total sales and total variable costs, thereby impacting the total contribution margin. A higher volume typically increases total sales revenue and variable costs, but if the selling price per unit remains constant, the increase in total contribution margin will be proportional to the increase in volume minus the increase in variable costs. However, in the context of equilibrium, such as in chemical reactions where factors like concentration, pressure, temperature, and catalysts are crucial, the impact of volume changes might not relate directly.
Using the traditional calculation, marginal cost is calculated as the change in total cost divided by the change in quantity. This also applies to scenarios where volume changes are considered since marginal cost assessments are essential in understanding how costs will vary with changes in production levels or volume changes.