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Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $25.00 Variable costs per unit: Direct
Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $25.00 Variable costs per unit: Direct material $6.00 Direct manufacturing labor $1.80 Manufacturing overhead $0.50 Selling costs $3.00 Annual fixed costs $96,000 The company sells 14,000 units at the end of the year. If direct labor and direct material costs increase by $2.00 each, contribution margin A. increases by $14,000 B. increases by $56,000 C. decreases by $14,000 D. decreases by $56,000 ...
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