The production manager believes a $700 fixed cost investment would reduce variable costs by $2/unit. Assuming...

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The production manager believes a $700 fixed cost investment would reduce variable costs by $2/unit. Assuming no change to sales volume or selling price, should the investment be made? a. Yes. The contribution margin will increase by $620 and Variable costs will decrease by $620 b. Yes. The contribution margin will increase by $620 C. Yes. Variable costs will decrease by $620 d. No. Operating income will decrease by $80 The production manager believes a $700 fixed cost investment would reduce variable costs by $2/unit. Assuming no change to sales volume or selling price, should the investment be made? a. Yes. The contribution margin will increase by $620 and Variable costs will decrease by $620 b. Yes. The contribution margin will increase by $620 C. Yes. Variable costs will decrease by $620 d. No. Operating income will decrease by $80

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