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Question: Assume that a music store sells three types of electric guitars: Telecaster, Stratocaster, and Jazzmaster. The music store has monthly fixed costs of $222,500 and sells 2 Telecasters for every Stratocaster, and 4 Stratocasters for every Jazzmaster. The product information is presented below:
Required
1. Determine the contribution margin for each electric guitar. 2. Determine the average contribution margin for the sales mix. 3. Determine the number of Stratocasters sold at the monthly break-even point.
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budgeting is an unnecessary burden on many managers. it takes time away from important day-to-day problems. do you
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