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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 Preview

    Question 1:
    Margin per unit increase or decrease

    Margin per unit will also increase ...

    Solution Summary

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