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The contribution margin ratio always increases when the

a. variable costs as a percentage of net sales increase
b. variable costs as a percentage of net sales decrease
c. break-even point increases
d. break-even point decreases

User Anlogg
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Final answer:

The contribution margin ratio always increases when the variable costs as a percentage of net sales decrease.

Step-by-step explanation:

The contribution margin ratio always increases when the variable costs as a percentage of net sales decrease. When variable costs decrease, the contribution margin ratio increases because it represents the amount of revenue available to cover fixed costs and contribute to profit.

User Endofzero
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