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Oriole Orthotics Company distributes a specialized ankle support that sells for $ 3 0 . The company s variable costs are $ 2 0 per
Oriole Orthotics Company distributes a specialized ankle support that sells for $ The companys variable costs are $ per unit; fixed costs total $ each year. Calculate the contribution margin ratio. If sales increase by $ per year, by how much should operating income increase? Last year, Oriole sold ankle supports. The companys marketing manager is convinced that a reduction in the sales price, combined with a $ increase in advertising, will result in a increase in sales volume over last year. Should Oriole implement the price reduction? Oriole SHOULDSHOULD NOT implement the price reduction because the estimated operating income is LESSMORE than the current operating income
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