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Saratoga Cupcakes Co. is selling cupcakes for $12 for a box of one dozen. Sarasota has fixed costs equaling $86520 per year, and its accountant
Saratoga Cupcakes Co. is selling cupcakes for $12 for a box of one dozen. Sarasota has fixed costs equaling $86520 per year, and its accountant has calculated the monthly break-even at 1030 boxes sold. Which of the following statements is correct based on this information? Variable costs equal $5 per box, and contribution margin is $7 per box. Variable costs equal $7 per box, and contribution margin is $5 per box. Variable costs equal $6.50 per box, and contribution margin is $5.50 per box. Variable costs equal $6 per box, and contribution margin is $6 per box
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