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Question - Vasquez Company sells a single product that has variable costs of $5 per unit and the company has total fixed costs of $70,000. Vasquez estimates demand at various activity levels as follows:
Units Sold
Price per unit
10,000
14.00
12,000
13.00
14,000
12.00
16,000
11.00
18,000
10.00
Required -
1. Calculate the total contribution margin at each price level?
2. Which price maximizes profit?
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