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.
Explanation:
When you increase the contribution margin of the products you sell, you are decreasing the costs and expenses associated with each product and increasing the amount of revenue each product generates. The result of is a decrease in your break-even point.
