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Gena Manufacturing Company has a fixed cost of $251,000 for the production of tubes. Estimated sales are 152,600 units. A before tax profit of $125,922

Gena Manufacturing Company has a fixed cost of $251,000 for the production of tubes. Estimated sales are 152,600 units. A before tax profit of $125,922 is desired by the controller. If the tubes sell for $18 each, what unit contribution margin is required to attain the profit target?

Multiple Choice

  • $2.86.

  • $1.33.

  • $2.47.

  • $0.76.

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