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Question 1: Using the contribution margin format income statement, which of the following will result from an increase of one unit sold?
Option 1: Variable costs will increase in direct relation to the contribution margin ratio.
Option 2: Variable costs will decrease in direct relation to the contribution margin ratio.
Option 3: Every unit of product sold will decrease income by the contribution margin.
Option 4: Every unit of product sold will increase income by the contribution margin.
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