Determine the new contribution margin

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Reference no: EM1336124

A company sold 5,000 units for a price of $50 per unit and had the following information:

If the sales price per unit were to increase by 10%, variable expenses were to increase by 12.5% and fixed expenses were to increase by 20%, what would be the new contribution margin?

$19 per unit.

$21 per unit.

$23 per unit.

$25 per unit.

None of the above.

Reference no: EM1336124

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