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Company XYZ is currently operating with a 40% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase
Company XYZ is currently operating with a 40% contribution margin. The company is planning an upgrade in its production facilities, which is expected to increase sales by $10,000. However, this upgrade is expected to increase fixed costs of $2,500. What would be the expected change in profit? a. Increase by $12,500 O b. Decrease by $2,500 O c. Decrease by $4,000 O d. Increase by $1,500 O e. Increase by $10,000
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