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Michael Vick has written a self improvement book that has the following cost characteristics: Selling Price $16.00 per book Variable cost per unit: Production $4.00

Michael Vick has written a self improvement book that has the following cost characteristics:

Selling Price $16.00 per book

Variable cost per unit:

Production $4.00

Selling & administrative 2.00

Fixed costs:

Production $88,000 per year

Selling & administrative 18,000 per year

Assume the variable production cost and the price were both cut by $2.00 per unit. Which of the following would change?

Breakeven point in units

Contribution margin ratio

Total fixed costs

Contribution margin per unit

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