Initial post: In a strategy meeting, the computer manufacturing company's president said, 'If we raised the price of our product, the company's...
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Initial post:

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?

Top Answer

Answer.. The president is correct. A price increase results in a higher unit contribution margin. An increase in the unit... View the full answer

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