East Company manufactures and sells a single product with a positive contribution margin. If the selling price and the variable expense per unit both increase 5% and fixed expenses do not change, what is the effect on the contribution margin per unit and the contribution margin ratio?
Contribution
Contribution
margin per unit
margin ratio
A)
No change
No change
B)
Increase
Increase
C)
Increase
No change
D)
Increase
Decrease