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Phil Pfeifer owns a business refurbishing Army Surplus calculators. He has a contract to buy the calculators from government sources and could purchase up to

Phil Pfeifer owns a business refurbishing Army Surplus calculators. He has a contract to buy the calculators from government sources and could purchase up to 4,290 a month. His bid of $4.40 per calculator had won the contract to purchase the surplus calculators. He invested $37,500 in an automated engraving machine and started selling personalized calculators through a network of army surplus stores and VFW posts.
Pricing was a problem, however. First he had to consider that, on average, his resellers charged 42% margins and were content to sell at his recommended retail prices as long as they received their margins. Second, he thought it cost him $$0.83 in labor and materials to engrave customized messages. For several months he sold an average of 1,050 calculators per month at a retail selling price of $31 per customized calculator. His wife suggested he could watch more lacrosse if he charged higher prices and sold fewer calculators. Phil raised the price to $45 and saw the number of calculators sold drop to 778.
How'much total dollar contribution to fixed cost (aka gross margin) did he make when the price increased?
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