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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?
Data is provided in the Information worksheet in the template; complete the statement of cash flow in the Cash Flow Statement worksheet.
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