Consider the following scenario: Mercer Company charges $100 per textbook sold. The variable cost per textbook was originally $28, but Mercer recently negotiated with a different textbook supplier, and now their variable cost per textbook is $24. Which of the following represents Mercer's position since their variable cost decreased?

Group of answer choices

Mercer's contribution margin increased and break-even point decreased.

Mercer's contribution margin increased and break-even point increased.

Mercer's contribution margin decreased and break-even point decreased.

Mercer's contribution margin decreased and break-even point remained unchanged