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Smerks department store has rearranged the merchandise

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Smerk's Department Store has rearranged the merchandise display cases on the first floor of its building, placing fast turnover items near the front door. This rearrangement has caused the company's contribution margin (and taxable income) to increase by $48,000 per month. If the company's income tax rate is 35%, what is the after-tax benefit from this rearrangement of facilities?

Reference no: EM13595267

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