Cost volume profit applied to the service industry
A nursing home has the following annual budget: 
Which of the following statements is correct if fixed administration costs were increased by $50 000 and all other matters remained the same?
A) The break-even point in inpatient days would increase.
B) The contribution would decrease.
C) The net profit would increase.
D) There would be no change in break-even point.
Correct Answer:
Verified
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