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Demonstrate how much will net income increase

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Reference no: EM132548748

Company has provided the following data:

Sales -----------------12,000 units

Sales price----------------- $100 per unit

Variable cost --------------$50 per unit

Fixed cost ------------------$300,000

Question 1: If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, by how much will net income increase?

Reference no: EM132548748

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