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Laser Technology, Inc. is analyzing a proposed new product. The company expects to sell 2,200 units, give or take 4 percent. The expected variable cost
Laser Technology, Inc. is analyzing a proposed new product. The company expects to sell 2,200 units, give or take 4 percent. The expected variable cost per unit is $290 and the expected fixed costs are $589,000. Cost estimates are considered accurate within a plus or minus 3 percent range. The depreciation expense is $286,000. The sales price is estimated at $750 per unit, plus or minus 3 percent. What is the contribution margin per unit under the best case scenario? Acceptable answers are: $428 or $460 or $468.70 or $482.50 or $491.20
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