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The following relates to Gloria Corporation, which produced and sold 50,000 units during a recent accounting period:
Sales P850,000
Fixed manufacturing costs 210,000
Variable manufacturing costs 140,000
Fixed selling and administrative expense 300,000
Variable selling and administrative expense 45,000
Income tax rate 40%
Problem 1: For the next accounting period, if production and sales are expected to be 40,000 units, the company should anticipate a contribution margin per unit of
A. P1.00 C. P3.10
B. P13.30 D. P7.30
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