Biology Forums - Study Force

There is an important relation between contribution margin and profit. Which of the following statements is not true?

▸ As the number of units sold rises, profit increases by the additional contribution margin per unit.

▸ As the number of units sold rises, profit increases by the variable cost per unit.

▸ As the number of units sold increases, total contribution margin increases, but fixed costs remain the same.

▸ As the number of units sold decreases, total contribution margin decreases, but fixed costs remain the same.

Content hidden