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If the Selling Price Per Unit and the Variable Cost

Question 113

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If the selling price per unit and the variable cost per unit both increase by 5%, what is the effect on the contribution margin per unit and on the contribution margin ratio?  Contribution margin per unit  Contribution margin ratio  a) Increase  Increase  b) Increase  No effect  c) Decrease  No effect  d) Decrease  Increase \begin{array}{ll}\text { Contribution margin per unit }&\text { Contribution margin ratio }\\\hline\text { a) Increase } & \text { Increase } \\\text { b) Increase } & \text { No effect } \\\text { c) Decrease } & \text { No effect } \\\text { d) Decrease } & \text { Increase }\end{array}

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