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George Fine, owner of Fine Manufacturing, is considering the introduction of a new product line. George has considered factors such as costs of raw materials, new equipment, and requirements of a new production process. He estimates that the variable costs of each unit produced would be $9 and fixed costs would be $65,100.
If the selling price of the product is set at $19 per unit, Fine Manufacturing expects to sell 13,600 units. What would be the total contribution to profit from this product at this price?
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