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Margin Company has total fixed costs of $360,000 variable costs of $14 per unit and a sales price per unit of $24. If the unit
Margin Company has total fixed costs of $360,000 variable costs of $14 per unit and a sales price per unit of $24. If the unit sales price is reduced from $24 to $20 and advertising is increased by $10,000, sales will increase from 40,000 to 65,000 units Should Margin Company reduce its per unit sales price and pay for the additional advertising Prepare contribution margin Income statements for the current situation and another based on the proposed changes. (Omit the "$" sign in your response.) MARGIN COMPANY Contribution Margin Income Statement Current Proposed Accounts payable Accounts receivable Cash Fixed costs Sales Variable enote Should Margin Company implement the proposed changes? Click to select
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