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What is the amount of contribution margin

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Question - Spartan Systems reported total sales of $490,000, at a price of $25 and per unit variable expenses of $18, for the sales of their single product.

Total Per Unit

Sales $490,000 $25

Variable expenses 352,800 18

Contribution margin 137,200 $7

Fixed expenses 119,000

Net operating income $18,200

What is the amount of contribution margin if sales volume increases by 20%?

Reference no: EM131912449

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