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Problem - A company sells small motors as a component part to automobiles. The Model 101 motor sells for $790 and has per-unit variable costs of $316 associated with its production. The company has ?xed expenses of $100,000 per month. In August, the company sold 435 of the Model 101 motors.
Required -
A. Calculate the contribution margin per unit for the Model 101.
B. Calculate the contribution margin ratio of the Model 101.
C. Prepare a contribution margin income statement for the month of August. Use a minus sign for a net loss if present.
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