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The manager at the Yarn Shoppe needs to determine the price she could sell 5 0 units of wool yarn and continue to earn an

The manager at the Yarn Shoppe needs to determine the price she could sell 50 units of wool yarn and continue to earn an operating income of $1,250. Review the following information.

Target operating income $1,400

Fixed costs 1,900

Targeted contribution margin $3,300

Variable cost per unit 25

Required: Compute the target price of 50 units to earn the operating income of $1,250.


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