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The following costs have been estimated based on sales of 27,000 units: Total Annual Costs Percent That Is Variable Direct materials $ 270,000 100 %

The following costs have been estimated based on sales of 27,000 units:

Total Annual Costs Percent That Is Variable
Direct materials $ 270,000 100 %
Direct labor 190,000 100
Manufacturing overhead 190,000 60
Selling and administrative 110,000 30

What selling price will yield a contribution margin of 50%?

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