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What is the budgeted contribution margin

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Question - The Rally Company manufactures and sells toy cars. Each car sells for $37.16 and the variable cost per unit is $13.98. Rally's total fixed costs are $20,000 and budgeted sales are 2,502. What is the budgeted contribution margin (note: not the per unit contribution margin)?

The budgeted contribution margin is (selling price x budgeted units) - (variable cost x budgeted units).

Reference no: EM131613826

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