Final answer:
Beta Company will not have a higher break-even volume.
Step-by-step explanation:
The contribution margin ratio is calculated by dividing the contribution margin by the sales revenue. The contribution margin represents the amount of sales revenue that is available to cover fixed costs and contribute to profits. In this case, Alpha Company has a contribution margin ratio of 0.35, meaning that 35% of each sales dollar covers the variable costs and contributes to profits. Beta Company has a higher contribution margin ratio of 0.45, indicating that 45% of each sales dollar goes towards covering the variable costs and generating profits. Therefore, the statement that Beta Company will have a higher break-even volume is false, as a higher contribution margin ratio indicates that a greater proportion of each sales dollar is available to cover fixed costs and reach the break-even point.