Question
Lange Company sells three products: X, Y and Z. Product X's unit contribution margin is higher than Product Y's and Product Y's is higher than
Lange Company sells three products: X, Y and Z. Product X's unit contribution margin is higher than Product Y's and Product Y's is higher than Products Z's. Which one of the following events is most likely to increase the company's overall break-even point?
The installation of new automated equipment and subsequent lay-off of factory workers. | ||
A decrease in Product Z's selling price. | ||
An increase in the overall market demand for Product Y. | ||
A change in the relative market demand for the products, with the increase favoring Product Z relative to Product Y and Product X. |
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