Which of the following statements is true? 1. If the variable expense per unit decreases, and all other factors remain the same, the contribution margin ratio will increase. II. The smaller the contribution margin ratio, the smaller the amount of sales required to cover a given amount of fixed expenses. O Only statement II is true. Both statements are true. Only statement I is true. Neither statement is true.

Which of the following statements is true? 1. If the variable expense per unit decreases, and all other factors remain the same, the contribution margin ratio will increase. 11. The smaller the contribution margin ratio, the smaller the amount of sales required to cover a given amount of fixed expenses Only statement II is true. Both statements are true. Only statement 1 is true. Neither statement is true