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76 Part 1 Yap, Inc. manufactures an organic insecticide that is marketed and sold via television infomercials. Each YAP kit sells for $22, which includes
76 Part 1 Yap, Inc. manufactures an organic insecticide that is marketed and sold via television infomercials. Each "YAP" kit sells for $22, which includes a base price of $20 per "YAP kit plus $2 in shipping and handling fees. Yap's contribution margin ratio is 60%. In addition, Yap expects to break even if it sells 17,500 "YAP kits per month. Required: a. What is the unit variable cost of a "YAP kit? b. What are Yap's monthly fixed costs? c. Suppose Yap introduces an offer for "free" shipping and handling. Ho additional "YAP" kits must be sold each month to break even
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