Which of the following would trigger a larger decrease in unit contribution margin a 5 decrease in the selling price or a 5 decrease in variable costs Why ...

A 5 decrease in selling price would result in a larger decrease in unit contribut ...

Which of the following would trigger a larger decrease in unit contribution margin : a 5% decrease

Question:

Which of the following would trigger a larger decrease in unit : a 5% decrease in the selling price or a 5% decrease in variable costs? Why?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...