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Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $23 Variable costs per unit: Direct material
Orion Company sells several products. Information of average revenue and costs is as follows:
Selling price per unit $23
Variable costs per unit:
Direct material $4
Direct manufacturing labor $1.70
Manufacturing overhead $0.40
Selling costs $2
Annual fixed costs $100,000
The company sells 12,000 units at the end of the year.
If direct labor and direct material costs increase by $1 each, contribution margin ________.
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