Last year, variable expenses were 60% of total sales and fixed expenses were 10% of total sales, If the company increases its selling price by 10%, but if fixed expenses, variable costs per unit, and unit sales remain unchanged, the effect of the increase in selling price on the company's total contribution margin would be a. A decrease of 2% b. An increase of 5% c. An increase of 10% d. An increase of 25%

Last year, variable expenses were 60% of total sales and fixed expenses were 10% of total sales, If the company increases its selling price by 10%, but if fixed expenses, variable costs per unit, and unit sales remain unchanged, the effect of the increase in selling price on the company's total contribution margin would be a. A decrease of 2% b. An increase of 5% c. An increase of 10% d. An increase of 25%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6DQ

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