Increase the selling price Decrease the variable expenses per unit
Which of the following is NOT a
way that an entrepreneur could
increase the contribution margin
or profit of each unit sold?
Decrease the monthly fixed expenses for the business
Change how the unit is defined

Change how the unit is defined

Explanation:

The contribution margin per unit is calculated by subtracting variable costs from the selling price. A high selling price and a low variable cost will result in a higher contribution margin per unit. Therefore, increasing the selling price and reducing variable costs will increase the contribution margin per unit.

Profit per unit is will higher if the total costs are low. Total cost is the sum of variable costs and fixed costs. Reducing the monthly fixed costs expenses results in lower total costs and higher profit per unit.

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