For a particular product in high demand,a company decreases the sales price and increases the sales commission.These changes will not increase
A)sales volume.
B)total selling expenses for the product.
C)the product contribution margin.
D)the total variable cost per unit.

Question

Quizplus · Accepted Answer

The product contribution margin will not increase because it is calculated as sales price minus variable costs. Decreasing the sales price reduces the contribution margin, and increasing sales commission increases variable costs, further reducing the contribution margin.

For a Particular Product in High Demand,a Company Decreases the Sales