In cost volume profit analysis, an increase in contribution margin (CM) per unit can be made by a(n) in sales price per unit and a(n) in variable costs per unit

Accounting Aug 31, 2020

In cost volume profit analysis, an increase in contribution margin (CM) per unit can be made by a(n) ______ in sales price per unit and a(n) ______ in variable costs per unit.

Select one:
a. increase, decrease
b. decrease, increase
c. decrease, decrease
d. increase, increase

Expert Solution

The correct answer is a. Increase , decrease

In CVP analysis, contribution margin is a difference of sales value and variable cost. An increase in contribution margin is a result of increase in sales and a decrease in variable cost.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote