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If a Consulting Firm Experiences a Substantial Increase in Fixed

Question 118

Multiple Choice

If a consulting firm experiences a substantial increase in fixed period expenses, and no other changes occur, what is the probable result?


A) The firm will see a reduction in the break-even sales point.
B) The firm will see an increase in the margin of safety.
C) The firm will see an increase in the degree of operating leverage.
D) The firm will see an increase in monthly service revenues.

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