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What Would Be the Result of a Decrease in the Sales

Question 71

Multiple Choice

What would be the result of a decrease in the sales price in the basic cost-volume-profit model?


A) The decrease would require a recomputation of the gross profit per unit.
B) The decrease would be offset by an increase in unit costs.
C) The decrease would decrease the break-even volume.
D) The decrease would increase the break-even volume.

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