Question: How will a company's contribution margin be affected if it invests in equipment that increases its fixed costs but also achieves a reduction in direct
How will a company's contribution margin be affected if it invests in equipment that increases its fixed costs but also achieves a reduction in direct labor eost per unite
Multiple Choice
Contribution margin will remain the same.
Contribution margin will fall.
Contribution margin will either rise or fall, depending on the magnitude of each cost.
Contribution margin will increase.
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