ECONOMICS

Detailed explanation-1: -If sales volume increases and all other factors remain unchanged, the contribution margin ratio will decrease.

Detailed explanation-2: -When sales increase, it changes certain financial aspects of your business, such as the overhead applied to each unit, your profit margins and your unit fixed costs.

Detailed explanation-3: -Answer and Explanation: The total contribution margin is the excess of sales over total variable costs. So, if sales volume remains the same, the total contribution margin will decrease when the variable expense per unit increases.

Detailed explanation-4: -If sales volume increases and all other factors remain constant, then the: contribution margin ratio will increase. margin of safety will increase. net operating income will decrease.

Detailed explanation-5: -When the contribution margin per unit increases assuming all other factors remain constant. The effect would be An increase in sales price A decrease in fixed cost An increase in break-even point in units A decrease in break-even point in units.