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Madison is a managerial accountant for a shoe manufacturer. The company recently completed an activity-based costing study to identify its most profitable products. Madison noticed
Madison is a managerial accountant for a shoe manufacturer. The company recently completed an activity-based costing study to identify its most profitable products. Madison noticed a significant change in the per-unit production costs of football cleats. As a result of the study, the per-unit cost increased from $13.87 to $19.42. The company sells 1,258,000 pairs of cleats annually to retailers at a selling price of $35 each. What was the total margin for the football cleats before the activity-based costing study?
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