P company is a labor intensive company and on the contrary, Q company is heavily capital- intensive company. Which of the following statement is true to above case? Answer choices: a) P company will have higher contribution margin per unit. b) Q company will have higher contribution margin per unit. c) Pcompany will have higher break-even point. d) Q company will have higher break-even point.
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Answer:
Option C is the answer
Pcompany will have higher break-even point
Explanation:
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