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Demo Products had costs of $600,000 when sales equaled 75,000 units. When sales increased by 25,000 units, costs increased by $125,000. The selling price is

Demo Products had costs of $600,000 when sales equaled 75,000 units. When sales increased by 25,000 units, costs increased by $125,000. The selling price is $9 per unit.

1) Determine the fixed and variable portions of costs.

2) Prepare a table which shows the contribution margin income statement in a month with volume of 80,000.

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