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    Business
  3. Study Set
    Managerial Accounting for Undergraduates
  4. Exam
    Exam 11: Flexible Budgets, Segment Analysis, and Performance Reporting
  5. Question
    If a Business Segment Has a Relatively Low Contribution Margin
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If a Business Segment Has a Relatively Low Contribution Margin

Question 113

Question 113

True/False

If a business segment has a relatively low contribution margin, management may need to look into increasing prices of goods or reducing the cost of goods sold relating to that segment.

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