In a strategy meeting, the computer manufacturing company's president
said, "If we raised the price of our product, the company's break-even point will be lower." The financial vice president responded by saying, "The company will also be less likely to incur a loss." As a management accountant would you agree or disagree with these statements and why?
Answer.. The president is correct. A price increase results in a higher unit contribution margin. An increase in the unit... View the full answer