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given Sales in unit 3000 sales in dollar 525000 less variable costs 286500 contribution margin 238500 less fixed cost 202000 operating income 36500 this scenario
given
Sales in unit 3000
sales in dollar 525000
less variable costs 286500
contribution margin 238500
less fixed cost 202000
operating income 36500
this scenario assumes 5% increase in sales volume (unit) as a result of 20000 of increase advertising as well as $10 decrease in per unit variable cost can be realized as a result of new automated production equipment. the new equipment will increase depreciation expense by $25000
what is the sales in dollar , contribution margin, operating income
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