If a company's selling price and variable cost per unit increase by 5%, contribution margin also will increase by 5%.
if contribution margin increased and fixed cost remain same, break even point in units will decrease. because, break even point will calculate by dividing fixed cost by contribution margin.
So, answer will be D. Increase and Decrease
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Question 16 Abensan Company sells a single product units will, respective both the selling price and...
Abensan Company sells a single product. If both the selling price and variable cost per unit increase by 5% and fixed costs remain steady, then contribution margin per unit and break- even point in units will, respectively, decrease and increase. increase and remain unchanged. decrease and remain unchanged. O increase and decrease.
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