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Problem - Toussant Company sells 20,000 units at $120 per unit. Variable costs are $90 per unit, and fixed costs are $250,000.
a. Prepare an income statement for Toussant in contribution margin format.
b1. Determine Toussant's (1) contribution margin ratio
b2. Determine Toussant's (2) unit contribution margin.
c. How much would operating income change if Toussant's sales increased by 3,000 units?
How To apply strategic management accounting tools and techniques to improve the contribution and sustainability of value creating activities
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