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How will this change their net profit margin

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Fashion Pro currently manufactures their novelty t-shirts for a contribution margin of 71%. With a sales revenue of $748,992, their fixed costs require 42% of their sales. They have signed with a new company that can produce their shirts, increasing their contribution margin to 76%. How will this change their net profit margin, assuming the sales revenue does not change?

Reference no: EM131677643

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