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Ross company manufactures mountain bikes that sells for $650 each. It's variable cost ratio is 45% with fixed cost amounting to $75,000. Ross wants an after tax net income of $180,000 after paying IRS 25% NC 12% and Mecklenburg 3.5%. Compute the following if fixed cost are expected to increase by 30%.
What is the contribution margin in dollars?
What is the total of taxes paid?
number of bikes to be sold__________________________
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