What is effect of an increase in a unit contribution margin

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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

Problem 2: Short term debt financing when compared to long term financing has the following features from the viewpoint of the borrower.

Single choice.

A. Greater flexibility, lower total cost, and lower risk

B. Greater flexibility, higher total cost, and greater risk

C. Greater flexibility, lower total cost, and greater risk

D. Greater flexibility, higher total cost, and lower ris

Reference no: EM132808880

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