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Chapter 6 Qu Help Save & Exit Sub 1 Mosstoot Shoe Corporation is a single product im The company is predicting that a price i
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Answer #1

Solution:

Price increase will result in:

Contribution margin ratio - Increase, because contribution margin per unit will increase keeping variable cost per unit same.

Break even point - Decrease as higher CM ratio results in decrease of break even point.

Hence choice A is correct.

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