All other things equal, Company B, with its higher fixed costs and lower variable costs, will have a higher contribution

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answerhappygod
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All other things equal, Company B, with its higher fixed costs and lower variable costs, will have a higher contribution

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All other things equal, Company B, with its higher fixed costsand lower variable costs, will have a higher contribution marginratio than Company A. Therefore, it will tend to realize a largerincrease in contribution margin and in profits when sales increase.(T/F).
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