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A product has fixed costs of $ 5 , 0 0 0 and a contribution margin ratio of 0 . 5 0 . If fixed

A product has fixed costs of $5,000 and a contribution margin ratio of 0.50. If fixed costs increase by $2,000, break-even dollars in sales will
Question 7Answer
a.
decrease by $10,000
b.
increase by $2,500
c.
increase by $14,000
d.
increase by $4,000

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