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You have a client who is a small manufacturer. He wants to know if he increases his product's variable expense by $2.00/unit and increases the

You have a client who is a small manufacturer. He wants to know if he increases his product's variable expense by $2.00/unit and increases the sales price by $2.00/unit, what will be the effect his on financial situation.

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decrease the contribution margin.

have no effect on the contribution margin ratio.

decrease the degree of operating leverage.

have no effect on the break-even volume.

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