If Variable Selling and Administrative Expenses Totaled $120,000 for the Year

Multiple Choice

If variable selling and administrative expenses totaled $120,000 for the year (80,000 units at $1.50 each) and the planned variable selling and administrative expenses totaled $136,500 (78,000 units at $1.75 each) ,the effect of the unit cost factor on the change in contribution margin is:

A) $19,500 decrease
B) $19,500 increase
C) $20,000 decrease
D) $20,000 increase