Question: What effect could the following changes, occurring independently, have on (1) the break-even point, (2) the unit contribution margin, and (3) the expected total profit?
What effect could the following changes, occurring independently, have on (1) the break-even point, (2) the unit contribution margin, and (3) the expected total profit?
a. An increase in fixed costs. b. A decrease in wage rates applicable to direct, strictly variable labor. c. An increase in the selling price of the product. d. An increase in production and sales volume. e. An increase in building insurance rates.
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