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Question - Kellog Corporation recently experienced a fire which destroyed all of its inventory. The following data have been reconstructed from partial accounting information, and pertain to the year up to the date of the fire.
Beginning inventory $20,000
Net purchases $45,000
Sales $80,000
Gross profit rate 40%
Required - Using the gross profit method, estimate the dollar amount of inventory which was destroyed in the fire.
A company's only product sells for $150 per unit. Its variable cost per unit are $100, What is its contribution margin per unit
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