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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $336,000 to $577,500 and would decrease the current variable costs of

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $336,000 to $577,500 and would decrease the current variable costs of $70 by $15 per unit. The selling price of $110 is not expected to change. Forrester's current break-even sales are $924.000 and current break-even units are 8,400. If Forrester purchases this new equipment, the revised contribution margin ratio would be Multiple Choice Beata 15% 50 . o 55% 35% 70%

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