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A jeans maker is designing a new line

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Reference no: EM13909389

A jeans maker is designing a new line of jeans called the Slims. The jeans will sell for $ 205 per pair and cost $ 164 per pair in variable costs to make. 

(1) Compute the contribution margin per pair. 

(2) Compute the contribution margin ratio. 

(3) Describe what the contribution margin ratio reveals about this new jeans line.  

Reference no: EM13909389

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