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Question - Newman Company expects to produce and sell 2,000 units in the next month. The data on costs are as follows:
Per-unit costs:
Selling price $40
Variable manufacturing costs 10
Variable selling costs 6
Total costs:
Fixed manufacturing costs $16,000
Fixed selling costs 8,000
Required -
A. What is the variable cost per unit?
B. What is the contribution margin per unit?
C. What is the variable cost ratio?
D. What is the contribution margin ratio?
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