An increase in the contribution margin can be achieved by ________.
A) an increase in the sales price of a unit
B) a decrease in variable costs per unit
C) a combination of an increase in the sales price per unit and a decrease in variable costs per unit
D) all of the above

Question

Quizplus · Accepted Answer

All of the choices listed can increase the contribution margin. Increasing the sales price per unit will increase the contribution margin as long as it does not decrease demand. Decreasing variable costs per unit will also increase the contribution margin. A combination of both strategies can lead to even greater increases in contribution margin.

An Increase in the Contribution Margin Can Be Achieved by ________