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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $150.000 to $180.000 and would deerease the current variable costs of

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $150.000 to $180.000 and would deerease the current variable costs of $70 by $10 per unt. The selling price of $120 is not expected to change. Forrester's current break-even sales are $430.000 and current break-even units are 8.100 . If Forrester purchases this new equipment, the revised contribution margin ratio would be: Muitiple Choice 40% 60% 50% 10% 70%

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