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For a firm facing a marginal income tax rate of 31%, what is the after-tax cash flow effect of: (a) a $1,800 increase in contribution
For a firm facing a marginal income tax rate of 31%, what is the after-tax cash flow effect of: (a) a $1,800 increase in contribution margin during the year, and (b) a $900 increase in cash operating expenses?
(a) Effect on after-tax cash flow to contribution margin
(b) Effect on after-tax cash flow to cash operating expenses
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