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Assume Only the Specified Parameters Change in a Cost-Volume-Profit Analysis

Question 120

Multiple Choice

Assume only the specified parameters change in a cost-volume-profit analysis. If the contribution margin increases by $6 per unit, then operating profits will:


A) also increase by $6 per unit
B) increase by less than $6 per unit
C) decrease by $6 per unit
D) be indeterminable

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