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Suppose your company sells its product for $189 each. The variable cost is $113 each and there is fixed costs of $26,000 per month. The
Suppose your company sells its product for $189 each. The variable cost is $113 each and there is fixed costs of $26,000 per month. The monthly sales quantity has a 24% chance of being 270 and an 76% chance of being 540.
Please calculate the contribution margin and operating income/loss for each possible quantity.
Quantity Quantity
270 540
Sales
(VC)
CM
(FC)
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