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Question - Contribution margin ratio - Franklin Company incurs annual fixed costs of $57,550. Variable costs for Franklin's product are $31.50 per unit, and the sales price is $45.00 per unit. Franklin desires to earn an annual profit of $59,000.
Required - Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit.
How Computing the net cash inflow (incremental contribution margin minus incremental fixed expenses) anticipated from sale of the device for each year
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