can somebody guide me please if sales volume decrease and production volume increase contribution per unit increase or decrease.? if sales volume is equal to production volume both rises or fall contribution increase or decrease? please help!!!!!!!!!!
It is irrelevant how many you produce or sell – contribution per unit is selling price per unit minus variable cost per unit. So contribution per unit will only change if selling price p.u. or variable costs p.u. change.
(Total contribution will change with the number of units sold, but not the contribution per unit)