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Question - Simple Manufacturing Company makes units that each requires 2 pounds of material at $4 per pound. Simple Manufacturing is planning that 400 and 800 units will be built in May and June, respectively. This is a brand new product so there is no beginning inventory. Simple Manufacturing desires to keep material on hand equal to 20% of the next month's production needs. Use this information to determine total cost of May's raw material purchases.
What does the term contribution margin per unit means? How is the contribution margin used in cost analysis to support managerial decisions
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