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The Steam Company manufactures a product that is expected to incur $ 2 0 per unit in variable production costs and sell for $ 5

The Steam Company manufactures a product that is expected to incur $ 20 per unit in variable production costs and sell for $ 50 per unit. The sales commission is 15% of the sales price. Due to intense competition, Steam Company actually sold 200 units for $ 40 per unit. The actual variable production costs incurred were $ 25.00 per unit. Calculate the total contribution margin and contribution margin ratio at the expected price/costs and the actual price/costs. How might management use this information?

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