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What is the expected contribution margin next month

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Question - Gasson Company is a merchandising firm. Next month, the company expects to sell 800 units. The following data describe the company's revenue and cost structure:

Selling price per unit $40

Sales commission 5%

Purchase price (cost) per unit $18

Advertising expense $4,000 per month

Administrative expense $4,500 per month plus 15% of sales

Assume that all activity mentioned in this problem is within the relevant range. What is the expected contribution margin next month?

Reference no: EM133123320

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