Which of the following would produce the largest increase in the contribution margin per unit?
A) A 7% increase in selling price.
B) A 15% decrease in selling price.
C) A 14% increase in variable cost.
D) A 17% decrease in fixed cost.
E) A 23% increase in the number of units sold.

Question

Quizplus · Accepted Answer

A 7% increase in selling price would directly increase the contribution margin per unit because it raises the amount of revenue generated per unit without affecting the variable cost per unit.

Which of the Following Would Produce the Largest Increase in the Contribution