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Help Save & E Forrester Company is considering buying new equipment that would increase monthly fixed costs from $210,000 to $240,000 and would decrease the
Help Save & E Forrester Company is considering buying new equipment that would increase monthly fixed costs from $210,000 to $240,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $490,000 and current break- even units are 9,300. If Forrester purchases this new equipment, the revised contribution margin ratio would be: Multiple Choice 70% o 60%. 30% O O 10% 40%
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