Question 4 If Alpha Company is heavily labour intensive and Beta Company is heavily capital intensive, which
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Question 4
If Alpha Company is heavily labour intensive and Beta Company is heavily capital intensive, which of the following is most likely to be true relative to the other company? Assume all costs other than labour are equal for both companies.
Alpha Company's contribution margin per unit will be higher.
Alpha Company's break-even point will be higher.
Beta Company's contribution margin per unit will be higher.
Beta Company's contribution margin ratio will be lower.
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