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Harsh Pathak
on Nov 19, 2024

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If the variable expense per unit decreases, and all other factors remain the same, the contribution margin ratio will increase.

Variable Expense

Costs that change in proportion to the level of production or sales activity.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs have been deducted, indicating how much contributes to fixed costs and profits.

  • Analyze the effect of variable expenses per unit on the contribution margin ratio.
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JADEN PRINTUPNov 25, 2024
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