Compute the unit contribution margin for both models

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Reference no: EM132665994

Since the start of development work on the Wireless Wizard, advances in technology have altered the market somewhat, and management now believes that the company can introduce only one of the two models. Consultants confirmed this fact not too long ago, with Johnson and Gomez paying $36,400 for an in-depth market study. Sales salaries (excluding commission) will be $95,000 no matter which product is sold. The marketing and advertising costs indicated for each product are incurred only if that product is sold. Other fixed overhead is expected to be the same, regardless of which product is introduced.

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Problem 1: Compute the unit contribution margin for both models

Reference no: EM132665994

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