If a companys fixed costs rise by $10,000, which of the following will be true? a. The
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If a company’s fixed costs rise by $10,000, which of the following will be true?
a. The break-even point will decrease.
b. The variable cost ratio will increase.
c. The break-even point will be unchanged.
d. The variable cost ratio will decrease.
e. The contribution margin ratio will be unchanged.
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Answer and Explanation Breakeven point is calcualted by dividing fixed costs b...View the full answer
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Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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