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Pelican Co. sells two products, A and Z. Product A's contribution margin per unit is lower than ...

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Pelican Co. sells two products, A and Z. Product A's contribution margin per unit is lower than ...

Pelican Co. sells two products, A and Z. Product A's contribution margin per unit is lower than Product Z's contribution margin per unit. However, Product A's contribution margin ratio is higher than Product Z's contribution margin ratio. If Pelican begins to sell more units of Product A and fewer units of Product Z, its

▸ break-even point will be higher than it was previously

▸ selling price will increase.

▸ break-even point will be lower than it was previously.

▸ sales mix will remain unchanged.

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Managerial Accounting

Edition: 4^th

Author: Davis

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