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The following contribution margin income statement represents the operations of Peroux Company, a small manufacturer, at a level of production of 1 0 , 0
The following contribution margin income statement represents the operations of Peroux Company, a small manufacturer, at a level of production of units assuming all units produced are sold:
Sales Revenue $
Variable Costs
Contribution Margin
Fixed Costs
Net Income
The relevant rage for Peroux Company is to units. If production and sales were to decrease to units, which of the following would likely occur?
Unit variable cost and unit fixed cost would not change.
Unit variable cost would not change, but unit fixed cost would decrease.
Unit variable cost would increase but unit fixed cost would not change.
Unit variable cost would not change, but unit fixed cost would increase.
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