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will thumbs up D Question 12 5 pts Which of the following statements is true? The lower the contribution margin ratio, the lower the amount
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D Question 12 5 pts Which of the following statements is true? The lower the contribution margin ratio, the lower the amount of sales revenue required to cover fixed costs If two companies have the same total sales revenue and same total costs, the company with the higher fixed costs will have a lower contribution margin ratio. To compute the sales revenue required to achieve a target profit, you divide the target profit by the contribution margin ratio. If sales revenue declines, a company will experience a larger decrease in profits if its operating leverage is low than if its operating leverage is high None of the above statements is true Step by Step Solution
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