A $200 Increase in a Product's Variable Expense Per Unit Accompanied

question 141

Multiple Choice

A $2.00 increase in a product's variable expense per unit accompanied by a $2.00 increase in its selling price per unit will:

• A) decrease the degree of operating leverage.
• B) decrease the contribution margin.
• C) have no effect on the break-even volume.
• D) have no effect on the contribution margin ratio.

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Definitions:

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