Consider the following scenario: Mercer Company charges $100 per textbook sold. The variable cost per...
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Accounting
Consider the following scenario: Mercer Company charges $100 per textbook sold. The variable cost per textbook was originally $28, but Mercer recently negotiated with a different textbook supplier, and now their variable cost per textbook is $24. Which of the following represents Mercer's position since their variable cost decreased?
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Mercer's contribution margin increased and break-even point decreased.
Mercer's contribution margin increased and break-even point increased.
Mercer's contribution margin decreased and break-even point decreased.
Mercer's contribution margin decreased and break-even point remained unchanged
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