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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 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 $276,000 to $544,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $690.000 and current break-even units are 6,900. If Forrester purchases this new equipment, the revised contribution margin ratio would be Multiple Choice 40% 45 O 55% O 15 60

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