What is the total contribution margin

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Jeremy Wellington sells widgets at $450 each which cost Jeremy $225 each. The only fixed costs are $35,000 for the rent of the store.

Required:

If Jeremy sold 650 widgets, what is the total contribution margin?

If sales increased by $74,250 and Jeremy’s costs for each widget was reduced by $25, what is Jeremy’s operating income.

Reference no: EM13789525

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