knowledge-check no. 5 which of the following is not a way that an entrepreneur could increase the…

knowledge-check no. 5 which of the following is not a way that an entrepreneur could increase the contribution margin or profit of each unit sold? increase the selling price decrease the variable expenses per unit decrease the monthly fixed expenses for the business change how the unit is defined

knowledge-check no. 5 which of the following is not a way that an entrepreneur could increase the contribution margin or profit of each unit sold? increase the selling price decrease the variable expenses per unit decrease the monthly fixed expenses for the business change how the unit is defined

Answer

Brief Explanations:

The contribution - margin per unit is calculated as selling price per unit minus variable cost per unit. Increasing the selling price or decreasing variable expenses per unit will increase the contribution - margin per unit. Changing how the unit is defined can also potentially change the contribution - margin. Fixed expenses do not affect the contribution - margin per unit; they affect overall profit but not the contribution - margin of each individual unit.

Answer:

C. Decrease the monthly fixed expenses for the business