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8. Which of the following is true regarding the contribution margin ratio of a company that produces only a single product? a. As fixed expenses
8. Which of the following is true regarding the contribution margin ratio of a company that produces only a single product? a. As fixed expenses decrease, the contribution margin ratio increases b. The contribution margin ratio multiplied by the selling price per unit equals the contribution margin per unit c. The contribution margin ratio will decline as unit sales decline d. The contribution margin ratio equals the selling price per unit less the variable expense ratio 9. Variable expenses for Alpha Corp are 40% of sales. What are the sales at break-even point, assuming that fixed expenses total $150,000 per year: a. $250,000 b. $375,000 c. $600,000 d. $150,000 10. If the variable expense per unit decreases, and all other factors remain the same, the contribution margin ratio will increase. a. True b. False
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