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Softstep Stables has developed a lighter horseshoe for thoroughbreds, called the Air Citation. The company is presently experiencing labor difficulties and plans to raise wages to avert a strike. This will increase the Variable Cost per shoe from $15 to $24. The shoes presently sell for $46 each, but due to the competitive environment, Softstep Stables are dropping their price to $36 each Their current volume is 1,000 units. Fixed costs are $1,400. What is unit (per shoe) contribution BEFORE the price and cost changes?
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