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1. If the selling price per unit were to drop $2, from $100 to $98, the sales volume were to increase 500 units to 4,500
1. If the selling price per unit were to drop $2, from $100 to $98, the sales volume were to increase 500 units to 4,500 units per month, and advertising expense were to increase by $1,000: a. the break-even point would increase. b. the break-even point would decrease. c. the contribution margin ratio would increase. d. operating income would decrease. 2. The contribution margin ratio always decreases when the: a. breakeven point decreases. b. fixed expenses increase. c. selling price increases and the variable costs remain constant. d. variable cost increase and the selling price remains constant
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