___ old equipment is relevant in a decision to replace equipment. A. Cost of B.
ID: 2575523 • Letter: #
Question
___ old equipment is relevant in a decision to replace equipment. A. Cost of B. Book value of C. Accumulated depreciation of D. Future maintenance costs of
Company X has reached its break-even point and has calculated its contribution margin ratio to be 70%, For each $1 increase in sales _______. Check ALL that apply:
net operating income will increase by $0.30
net operating income will increase by $0.70
total contribution margin will increase by $0.30
total contribution margin will increase by $0.70
A.net operating income will increase by $0.30
B.net operating income will increase by $0.70
C.total contribution margin will increase by $0.30
D.total contribution margin will increase by $0.70
Explanation / Answer
Future maintenance costs of old equipment is relevant in a decision to replace equipment 2 net operating income will increase by $0.70 and total contribution margin will increase by $0.70
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