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Gandee Company has an operating leverage factor of 5. Which of the following statements is true? Thus, an 89% change in An 8% change in
Gandee Company has an operating leverage factor of 5. Which of the following statements is true? Thus, an 89% change in An 8% change in variable costs should result in a 40% change in break-even sales. should result in a 40% change in The respective amounts that change are: An 89% change in income should result in a 40% change in sales revenue. An 89% change in variable costs should result in a 409% change in contribution margin. An 89% change in fixed costs should result in a 40% change in income. An 896 change in sales revenue should result in a 409b change in income. QUESTION 2 Which of the following occurs if a company experiences an increase in its fixed costs? The contribution margin would increase. Net income would increase. O The contribution margin would decrease. More than one of the answers would occur. The break-even point would increase. QUESTION 3 At a volume level of 500,000 units, Sullivan reported the following information: S 60 Sales price Variable cost per unit Fixed cost per unit The company's contribution-margin ratio is closest to: O 0.33. O 0.40. 20 4 0.67. 0.60. None of the answers is correct. Click Save and Submit to save and submit. Click Save All Answers to save all answers
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