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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 $ to $ The shoes presently sell for $ each, but due to the competitive environment, Softstep Stables plans to drop their price to $ each. Their current sales volume is units. Fixed costs are $
What is the total contribution to profit BEFORE the price and cost change?
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