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Bear is expecting a 20-cent increase in variable expenses

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Bear Publishing sells a nature guide. The following information was reported for a typical month (sales volume is constant each month):

Total Per Unit

Sales $17,600 $16.00

Variable expenses $9,680 $8.80

Contribution margin $7,920 $7.20

Fixed expenses $3,600

Net operating income $4,320

Bear is expecting a 20-cent increase in variable expenses. No other changes are expected or planned. How much contribution margin should Bear expect after the increase.

Reference no: EM13605389

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