If the Variable Cost of Goods Sold Totaled $80,000 for the Year

Multiple Choice

If the variable cost of goods sold totaled $80,000 for the year (16,000 units at $5.00 each) and the planned variable cost of goods sold totaled $86,250 (15,000 units at $5.75 each) , the effect of the unit cost factor on the change in contribution margin is:

A) $12,000 increase
B) $5,750 decrease
C) $12,000 decrease
D) $5,750 increase