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Assume Fixed Costs Are Constant and Contribution Margin Per Unit

Question 41

Multiple Choice

Assume fixed costs are constant and contribution margin per unit is reduced by 50 percent.What will happen to the break-even point in units?

A) It will decrease 50 percent.
B) It will increase 100 percent.
C) It will be the same.
D) It will increase 50 percent.

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