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Fill In the Blank Question One of Ajax Companrs products has a unit contribution margin of 525. Currently, the company.r produces and sells an average
Fill In the Blank Question One of Ajax Companrs products has a unit contribution margin of 525. Currently, the company.r produces and sells an average of 103,600 units of this producl annually. from which it consistently generates an operating income of $2.5 million. Competition is increasing. and the company's brand manager anticipates that annual sales will leveloff at100.000 units in the years ahead. Her goal is to increase the product's annual operating income by16.4%. to $2.91 million per year. Her strategy for achieving this goal is to change suppliers, which will reduce direct material costs by $2 per unit. She also intends to increase the product's selling price slightty to make it more comparable to the pricing of its competitors. Based on this information. if the product's annual xed costs remain unchanged at $90.00!). the brand manager estimates that the current selling price should be increased by s: 9 Need help? Review these concept resources. Read About the Concept
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