If Company a Is Heavily Labor-Intensive and Company B Is

question 74

Multiple Choice

If Company A is heavily labor-intensive and Company B is heavily capital-intensive which of the following is most likely to be true relative to the other company?

• A)Company A's contribution margin per unit will be higher
• B)Company B's contribution margin per unit will be higher
• C)Company A's break-even point will be higher
• D)Company B's contribution margin ratio will be lower

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