NUBD Co. manufactures and sells a single product. If the selling price and variable costs both decrease by 5% and fixed costs do not change, then * O the unit contribution margin will decrease and the contribution margin ratio will decrease O the unit contribution margin will decrease and the contribution margn ratio will remain the same O the unit contribution margin will remain unchanged and contribution margin ratio will decrease O neither the unit contribution margin nor the contribution margin ratio will change
NUBD Co. manufactures and sells a single product. If the selling price and variable costs both decrease by 5% and fixed costs do not change, then * O the unit contribution margin will decrease and the contribution margin ratio will decrease O the unit contribution margin will decrease and the contribution margn ratio will remain the same O the unit contribution margin will remain unchanged and contribution margin ratio will decrease O neither the unit contribution margin nor the contribution margin ratio will change
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 15MC: If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin...
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