A $2.00 increase in a product’s variable expense per unit accompanied by a $2.00 increase in its selling price per unit will:

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A $2.00 increase in a product’s variable expense per unit accompanied by a $2.00 increase in its selling price per unit will:

  1. A) decrease the degree of operating leverage.
  2. B) decrease the contribution margin.
  3. C) have no effect on the break-even volume.

D) have no effect on the contribution margin ratio

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C) have no effect on the break-even volume.

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