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An Analysis of the Influence of Reducing Direct Consumption Coefficient on Critical Average Gross Profit Rate

HE Yi-qing, WANG Huan-chen (Aetna Management School, Shanghai Jiaotong University, Shanghai 200052, China)  
In this paper, the influence of reducing direct consumption coefficient on critical average gross profit rate is studied. The conclusion that critical average gross profit rate may be raised by reducing direct consumption coefficient has been drawn out. Also, the increase range of critical average gross profit rate has been given.
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