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At its $30 selling price, Atlantic Company has sales of $30,000, variable manufacturing costs of $5,000, fixed manufacturing

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Answer #1

Units sold = Sales / Selling price

= $30,000 / $30

= 1,000

Total variable cost = $5,000 + $4,000 = $9,000

Variable cost per unit = $9,000 / 1,000 = $9 per unit

Contribution margin per unit = $30 - $9 = $21

2nd option.

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