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problem: Garth Company sells a single product that creates a positive contribution margin. If the selling price per unit & the variable cost per unit both increase ten percent and fixed costs do not change, the:

 

Unit contribution Margin

Contribution Margin Ratio

Breakeven in Units

A

Increases

Increases

Decreases

B

Does not change

Does not change

Does not change

C

Does not change

Increases

Does not change

D

Increases

Does not change

Decreases

 

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920545

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