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Alternative 1: Revenue $40,000; Variable Costs $25,000; Fixed Costs $10,000. Alternative 2: Revenue $50,000; Variable Costs $30,000; Fixed Costs $12,000. Requirements : Calculate the contribution

    • Alternative 1: Revenue $40,000; Variable Costs $25,000; Fixed Costs $10,000. Alternative 2: Revenue $50,000; Variable Costs $30,000; Fixed Costs $12,000.
    • Requirements:
      • Calculate the contribution margin ratio for each alternative.
      • Determine the alternative with the highest contribution margin per unit.

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