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If a firm has a lower variable cost as a percent of selling price (and hence a higher contribution margin as a percent of
If a firm has a lower variable cost as a percent of selling price (and hence a higher contribution margin as a percent of selling price) what would be true about the volume increase that would be required to offset a given price decrease. 1) It would be impossible to tell without more information 2) The volume offset would by the same. 3) The volume increase would be less 4) The volume increase would be more
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