Company XYZ expects the profit for next year to be higher than this year's profit. Assume that the selling price per unit, variable cost per unit, and total fixed costs will not change. Which one of the following is false? Select one: O a. degree of operating leverage next year will be lower than this year O b. total fixed cost next year will be the same as this year O c.contribution margin ratio next year will be the same as this year O d. breakeven point next year will be the same as this year O e.margin of safety next year will be lower than this year

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 13E
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Company XYZ expects the profit for next year to be higher than this year's profit. Assume that the selling price per unit, variable cost per unit, and total fixed costs will not change. Which one of the following is false? Select one: O a. degree of operating leverage next year will be lower than this year O b. total fixed cost next year will be the same as this year O c.contribution margin ratio next year will be the same as this year O d. breakeven point next year will be the same as this year O e.margin of safety next year will be lower than this year
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