Question: Assuming price greater than cost per unit, the contribution margin must increase as: both the sales price and variable cost per unit increase. c the
Assuming price greater than cost per unit, the contribution margin must increase as: both the sales price and variable cost per unit increase. c the sales price declines. the fixed cost per unit declines. the gap between sales price and variable cost per unit widens. if a textbook publisher generally has high fixed costs such as payments to authors and marketing costs and lower variable costs per unit such as printing costs, we would say the firm probably has a: low operating leverage low financial leverage high operating leverage, high financial leverage, In the financial breakeven calculation, the EAC is used to: allocate depreciation over the life of the project. determine opportunity cost of the investment. determine the contribution margin to fixed costs. allocate the initial investment over the life of the project. In scenario analysis, which of the following item is least likely to be assigned a range of values? Sales price per unit variable cost per unit Fixed costs Initial cost
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