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Variable and Fixed Expense Question

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Garth Company sells a single product. If selling price per unit and the variable expense per unit both increase by 10% and fixed do not change then would the:

Question 1:
Margin per unit increase or decrease?
Question 2:
Contribution margin ratio increase or decrease?
Question 3:
Break even in units increase or decrease or not change?

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Solution Summary

This solution provides answers to questions regarding variable and fixed expense questions.

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Question 1:
Margin per unit increase or decrease

Margin per unit will also increase ...

Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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