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Softstep Stables has developed a lighter horseshoe for thoroughbreds, called the Air Citation. The company is presently experiencing labor difficulties and plans to raise wages

Softstep Stables has developed a lighter horseshoe for thoroughbreds, called the Air Citation. The company is presently experiencing labor difficulties and plans to raise wages to avert a strike. This will increase the Variable Cost per shoe from $15 to $24. The shoes presently sell for $50 each, but due to the competitive environment, Softstep Stables plans to drop their price to $45 each. Their current (sales) volume is 1,136 units. Fixed costs are $1,541.
Assuming the sales volume DOES NOT change after the price increase, what is the total contribution to profit AFTER the price and cost change?

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