Redford Inc. has provided the following data: If the dollar contribution ma

Redford Inc. has provided the following data:

If the dollar contribution margin per unit is increased by 10% total fixed cost is decreased by 20% and all other factors remain the same
net income will how much?

Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit
sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs are $20 per unit based on the current level of activity and fixed selling and
administrative costs are $16 per unit.

The contribution margin per unit is how much?

Within the relevant range the variable cost per unit:

A.

remains constant as activity changes

B.

increases as activity increases.

C.

decreases as activity increases.

D.

can increase or decrease as the activity changes.