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Ace Company sells lawn mowers for $200 per unit. Contribution margin per unit is $40, and fixed costs total $4,000. Ace Company would like to

Ace Company sells lawn mowers for $200 per unit. Contribution margin per unit is $40, and fixed costs total $4,000. Ace Company would like to make a profit of $80,000. What is the variable cost per unit and the contribution margin ratio?

$40; 20%

$160; 20%

$40; 80%

$160; 80%

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