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Shadow Lake Bottling Company produces a soft drink that is sold for a dollar. The company pays $500,000 in production costs, half of which are
Shadow Lake Bottling Company produces a soft drink that is sold for a dollar. The company pays $500,000 in production costs, half of which are fixed costs. General, selling, and administrative costs amount to $200,000 of which $50,000 are fixed costs. Assuming production and sales of 800,000 units, the amount of contribution margin per unit is $.50. How do you get this answer ($.50)?
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