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2. A company is producing, on average, 10,000 units of product A per month despite having 30% more capacity. Costs per unit of product A

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2. A company is producing, on average, 10,000 units of product A per month despite having 30% more capacity. Costs per unit of product A are as follows: Direct Material Direct Labor Variable Factory Overhead Variable Selling Expense Fixed Factory Overhead Fixed Office Expense $8.00 5.00 2.00 0.50 3.00 2.00 The company decided to sale the product at $ 22. a) Calculate the contribution for the product A b) Find the profit ratio of the company (2 Marks) (2 Marks)

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