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MDI Enterprises prepared the following income statement for June:
Sales revenue (6,000 units) $150,000
Cost of goods sold:
Fixed costs $18,000
Variable costs 30,000 48,000
Gross profit 102,000
Operating expenses:
Fixed costs 27,000
Variable costs 12,000 39,000
Operating income $ 63,000
Problem 1: How much is MDI's total contribution margin?
Option 1: $120,000
Option 2: $105,000
Option 3: $108,000
Option 4: $93,000
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