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Managerial Accounting

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Barth Corp: 10% Increase in Sales Price and Variable Cost

MGRACT-OTYVSP

Barth Corporation sells a single profitable product. If the selling price per unit and the variable expense per unit both decrease by 10% and fixed expenses do not change, what is the impact on these items for their product?

Choice: Contribution Margin Ratio: Break-even in Dollars: Contribution Margin Per Unit:
A decrease decrease decrease
B no change no change decrease
C decrease no change no change
D no change decrease no change

Enter your response as A, B, C or D (capitalized).