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Which of the following statements about cost-volume-profit analysis is true ? To increase the contribution margin ratio, a manager should decrease fixed cost. The contribution
Which of the following statements about cost-volume-profit analysis is true?
To increase the contribution margin ratio, a manager should decrease fixed cost. | ||
The contribution margin ratio represents the percentage of sales revenue available to contribute towards covering variable and fixed costs. | ||
At the breakeven point, total sales revenue equals total costs. | ||
If a company expands operations outside of its relevant range, variable cost per unit could change, but total fixed costs will always stay constant. |
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