Flower Company Manufactures and Sells a Single Product That Has

Multiple Choice

Flower Company manufactures and sells a single product that has a positive contribution margin.If the selling price and variable costs both decrease by 5% and fixed costs do not change,then what would be the effect on the contribution margin per unit and the contribution margin ratio? $$\begin{array} { | c | c | c | } \hline & \text { Contrbution margin per unit } & \text { Contribution margin ratio } \\\hline \text { A. } & \text { Decrease } & \text { Decrease } \\\hline \text { B. } & \text { Decrease } & \text { No change } \\\hline \text { C. } & \text { No change } & \text { Decrease } \\\hline \text { D. } & \text { No change } & \text { No change } \\\hline\end{array}$$

A) Option A
B) Option B
C) Option C
D) Option D