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Please answer question 2a and B Cullumber Orthotics Company distributes a specialized ankle support that sells for $50. The company's variable costs $35 per unit:fixed
Please answer question 2a and B
Cullumber Orthotics Company distributes a specialized ankle support that sells for $50. The company's variable costs $35 per unit:fixed costs total $380,000 each year, (a 1) Your answer is correct. Calculate contribution margin ratio. (Round ratio to 2 percentage ploces, es 0,38 - 38%) 30 96 Contribution margin ratio (a2) If sales increase by $48.000 per year, by how much should operating income increase? (Use the rounded contribution morgin ratio calculated in the previous part) $ Change in operating income (b) Last year, Cullumber sold 38,000 ankle supports. The company's marketing munager is convinced that a 10% reduction in the sales price.combined with a $140,000 increase in advertising, will result in a 33% increase in sales volume over last year Compute the projected income. (Enter negative amounts using either a negative sin preceding the number es.-45 or parentheses es. (451) Projected income Should Cullumber implement the price reduction? than the cur Cullumber su implement the price reduction because the estimated operating income is should not should Step by Step Solution
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