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What is the effect of increase in a unit contribution margin

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Reference no: EM132730041

Problem 1: What is the effect of an increase in a unit contribution margin on the product's contribution ratio?

A. Increase but not necessarily ion direct proportion to the contribution margin increase

B. No effect on the contribution ratio

C. The effect cannot be determined

D. Decrease in direct proportion to the contribution margin increase

E. Increase in direct proportion to the contribution margin increase

Reference no: EM132730041

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