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Forrester Company is considering buying new equipment that would increase monthly foxed costs from $180,000 to 5612.000 and would decrease the current variable costs of
Forrester Company is considering buying new equipment that would increase monthly foxed costs from $180,000 to 5612.000 and would decrease the current variable costs of $90 by $30 per unit. The selling price of $120 is not expected to change. Forrester's current break even sales are 5720,000 and current break-even units are 6.000. If Forrester purchases this new equipment, the revised contribution margin ratio would be o o o o o
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