The effect of a price reduction is always to reduce the P/V ratio, to raise the break-even
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The effect of a price reduction is always to reduce the P/V ratio, to raise the break-even point, and to shorten the margin of safety. Explain with a suitable illustration.
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A price reduction typically has several effects on a companys costvolumeprofit CVP analysis including reducing the contribution margin per unit and al...View the full answer
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