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A product has fixed costs of $5,000 and a contribution margin ratio of 0.25. If fixed costs increase by $1,500, break-even dollars in sales will

A product has fixed costs of $5,000 and a contribution margin ratio of 0.25. If fixed costs increase by $1,500, break-even dollars in sales will

Question 7Answer

a.

increase by $2,500

b.

increase by $26,000

c.

decrease by $20,000

d.

increase by $6,000

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