A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will: Question 6 options: A) decrease the contribution margin. B) have no effect on the contribution margin ratio. C) have no effect on the break-even volume. D) decrease the degree of operating leverage.

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14-03-2022
Business

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A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will: Question 6 options: A) decrease the contribution margin. B) have no effect on the contribution margin ratio. C) have no effect on the break-even volume. D) decrease the degree of operating leverage.

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-03-28T12:13:20+02:00

An increase in a product's variable expense per unit that is accompanied by an equivalent increase in its selling price will D. decrease the degree of operating leverage.

What is an operating leverage?

An operating leverage simply measures the degree to which a project can increase revenue.

When there's an increase in a product's variable expense per unit that is accompanied by an equivalent increase in its selling price, it will decrease the degree of operating leverage.

Learn more about operating leverage on:

https://brainly.com/question/14867660