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

Question 163

Multiple Choice

Assume only the specified parameters change in a cost-volume-profit analysis.If the contribution margin increases by $2 per unit,then operating profits will:


A) also increase by $2 per unit.
B) decrease by $2 per unit.
C) increase by less than $2 per unit.
D) be indeterminable.

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