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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $627,000 and would decrease the current variable costs of

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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $240,000 to $627,000 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $600,000 and current break- even units are 6,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be: Multiple Choice 60% 40% 45% 55% 15% Morse Company reports total contribution margin of $63,210 and pretax net Income of $12,900 for the current month. The degree of operating leverage is: Multiple Choice 49 120 240 A company has $51,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years? (PV of $1. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $69,386 554 388 $53.040 $64 530

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