Question: Explanation not necessary If a firm has a contribution margin of $78,090 and a net income of $13,700 for the current month, what is their
Explanation not necessary If a firm has a contribution margin of $78,090 and a net income of $13,700 for the current month, what is their degree of operating leverage? A. 0.21 B. 1.21 C. 2.4 D. 5.7 A company's contribution margin per unit is $25. If the company increases its activity level from 200 units to 350 units, how much will its total contribution margin increase? A $3.750 B. $5,000 C. $1,250 D. $8,750 When sales price increases and all other variables are held constant, the break-even point will A produce a lower contribution margin B. remain unchanged C. Increase D. decrease When variable costs increase and all other variables remain unchanged, the break-even point will A Decrease B. produce a lower contribution margin Cremain unchanged D. increase The high-low method and least-squares regression are used by managers to A decide whether to make or buy a component part B maximize output C. minimize corporate tax liability D. estimate costs
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