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In Comparison to Selling a Product with a Low Contribution

Question 56

Multiple Choice

In comparison to selling a product with a low contribution margin ratio,selling a product with a high contribution margin ratio always:


A) Requires less dollar sales volume to cover a given level of fixed costs.
B) Results in a greater margin of safety.
C) Results in higher operating income.
D) Results in a higher contribution margin per unit sold.

Correct Answer:

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