Write a 350- to 700-word paper that addresses the following:
• Explain the components of cost-volume-profit analysis.
• What does each of the components mean?
• Based on the formulas you have reviewed, what happens to contribution margin per unit when unit selling prices increase? Illustrate your explanation with an example from a fictitious company of how an increase in unit selling prices might affect contribution margin.
• When fixed costs decrease, what does this do for sales? Illustrate your explanation with an example from a fictitious company.
• Define contribution ratios.
• What happens to contribution ratios as one of the components changes?