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Question 6 4 pts A company has the following results from periodic operations as illustrated below. Identify the contribution
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Answer #1

Answer:

Income from operations = $ 157,500

Unit contribution margin = $ 37

Explanation:

Income from operations = Total Revenue - Direct Costs - Indirect Costs = (5750 x $ 75) - (5750 x $ 38) - $ 55,250 = $ 431,250 - $ 218,500 - $ 55,250 = $ 157,500

Unit contribution margin = Sales Price Per Unit - Variable Cost Per Unit = $ 75 - $ 38 = $37

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