Assume Only the Specified Parameters Change in a Cost-Volume-Profit Analysis

Multiple Choice

Assume only the specified parameters change in a cost-volume-profit analysis. If the contribution margin increases by $6 per unit, then ________.

A) fixed costs increases by $6 per unit
B) operating income decreases by $6 per unit
C) fixed costs decreases by $6 per unit
D) operating income increases by $6 per unit