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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $300,000...

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Accounting

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $300,000 to $330,000 and would decrease the current variable costs of $75 by $10 per unit. The selling price of $130 is not expected to change. Forrester's current break-even sales are $580,000 and current break-even units are 6,900. If Forrester purchases this new equipment, the revised contribution margin ratio would be: Question 2Select one: a. 40%. b. 65%. c. 50%. d. 10%. e. 75%

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