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: Qu

Question

2 years ago

6

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: Qu

estion 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.

Business

1 answer:

MAVERICK [17] · Answer 1 · 2023-05-12T15:37:13+03:00

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.

<h3>What is an operating leverage?</h3>

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:

brainly.com/question/14867660