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Which of the following is true regarding the contribution margin ratio of a single product company?

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Which of the following is true regarding the contribution margin ratio of a single product company?;1. a. As fixed expenses decrease, the contribution margin ratio increases.;2. b. The contribution margin ratio multiplied by the variable expense per unit equals the contribution margin per unit.;3. c. If sales increase, the dollar increase in net operating income can be computed by multiplying the contribution margin ratio by the dollar increase in sales.;4. d. The contribution margin ratio increases as the number of units sold increases.

 

Paper#27464 | Written in 18-Jul-2015

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