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masha68 [24]
3 years ago
9

In two companies making the same product and with the same total sales and total expenses, the contribution margin ratio will be

lower in the company with a higher proportion of fixed expenses in its cost structure.A. True
B. False
Business
1 answer:
Bas_tet [7]3 years ago
4 0

Answer:

False

Explanation:

The contribution margin will be higher for the company with the highest fixed expenses. Contribution margin = selling price - variable cost

For example:

                                         Company A                                 Company B

sales price per unit                $100                                            $100

total costs per unit                  $80                                              $80

variable costs per unit            $50                                              $40

<u>fixed costs per unit                 $30                                              $40   </u>

contribution margin                $50                                              $60

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3 years ago
The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The bonds pay interest semiannuall
lesya [120]

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John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina re
swat32

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Economy's marginal social benefit=$65

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Economy's marginal social benefit=$65

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3 years ago
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