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LM Solution Company provides the following information about a single product in 2020.
Targeted operating income Sh. 40,000
Selling price per unit Sh. 3.50
Variable cost per unit Sh.1.05
Total fixed cost Sh. 90 000
Problem 1: What is the contribution margin ratio?
A 0.70
B 0.44
C 0.56
D 0.30
Problem 2: Budgeting process improves employee motivation
A TRUE
B FALSE
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