Question: 1. A 10% increase in fixed expenses would increase the contribution margin per unit by 10% do you agree with this statement? Why or why

1. A 10% increase in fixed expenses would increase the contribution margin per unit by 10% do you agree with this statement? Why or why not?

2. Explain how break-even units of sale would change when per unit price increases by 5% and variable expenses per unit decrease by more than 5%.

3. What is the main difference between absorption costing and variable costing methods when we calculate per unit product cost?

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