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What is the contribution margin per widget

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Q1. Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month. What is the contribution margin per widget?

Q2. Company ABC sells widgets with a per-unit sales price of $5.00 and variable costs per unit of $4.00. ABC's fixed costs are $1,000 per month. What is ABC's contribution margin ratio?

Reference no: EM132859720

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