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T PAGE LAYOUT FORMULAS DATA REVIEWVIEW Helvetica B 1 u .-. 2. A.-- E47 Merge & Center. $. % , 4:| conditional Format as Cell

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T PAGE LAYOUT FORMULAS DATA REVIEWVIEW Helvetica B 1 u .-. 2. A.-- E47 Merge & Center. $. % , 4:| conditional Format as Cell Insert Dele Formatting TableStyles Styles Font Alignment Number Cells Chapter 4 Disc Buddy, Inc. produces flash drives. Each unit sells for The per unit variable cost of manufacturing is Monthly fixed costs of all operations are Disc Buddy anticipates an income tax rate of 5.20 $2.40 $156,000 30% The (before tax) contribution margin per unit is? 2.80 In August, the company sold 5,000 more flash drives than planned What is the expected effect on after tax profit of selling the additional drives? Assume the company's normal sales level is profitable 0.5385 Calculate the (before tax) contribution margin ratio associated with one flash drive. In October, the company had sales that were $125,000 higher than planned. What is the effect on after tax profit related to the additional sales? Assume the company's normal sales level is profitable

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