Which of the following are inversely related to variable costs per unit?
A) Sales quantity and sales price
B) Net profit per unit and sales quantity
C) Operating cash flow and sales quantity
D) Operating cash flow per unit and contribution margin per unit
E) Contribution margin per unit and marginal costs

Question

Quizplus · Accepted Answer

Operating cash flow per unit and contribution margin per unit are inversely related to variable costs per unit. As variable costs per unit decrease, both operating cash flow per unit and contribution margin per unit typically increase, assuming other factors remain constant.

Which of the Following Are Inversely Related to Variable Costs