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Brasher Company manufactures and sells a single product that has a positive contribution margin. If the selling price and variable expenses both decrease by 5%
Brasher Company manufactures and sells a single product that has a positive contribution margin. If the selling price and variable expenses both decrease by 5% and fixed expenses do not change, then what would be the effect on the contribution margin per unit and the contribution margin ratio? A. Contribution margin per unit and margin ratio will both decrease B. Contribution margin per unit will decrease and contribution margin ratio will not change C. Contribution margin per unit will not change and contribution margin ratio will decrease D. Neither contribution margin per unit or margin ratio will not change
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