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How will a company contribution margin be affected

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Reference no: EM132488229

Question 1: How will a company contribution margin be affected by an investment in equipment that increases fixed costs in order to achieve a reduction in direct labor cost?

A. Contribution margin will increase

B. Contribution margin will fall

C. Contribution margin will remain the same

D. Contribution margin will either increase or decrease depending on the relative magnitudes of the changes in fixed and variable costs

Reference no: EM132488229

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