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Determine the number of units associated supply

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Reference no: EM132516011

Question 1: Associated Supply Inc. is considering introducing a new product that will require a $250,000 investment of capital. The fixed operating costs associated with the product would be $122,500, while the contribution margin percentage (ratio) would be 42%. Assuming a selling price of $15 per unit, determine the number of units (rounded to the nearest whole unit) Associated Supply would have to sell to generate net operating income of 32% of the amount of capital invested in the new product.

Reference no: EM132516011

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