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Vaughan Company sells a product that has a selling price of $15 por unit its variable cost per unit is $11. Total fixed costs
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Answer #1

Your required answer is option C i.e. $80,000

Explanation:

Contribution Margin per Unit = Sales Price - Variable Cost

Contribution Margin per Unit = \$15 - \$11

Contribution Margin per Unit = \$4

Contribution Margin on 20,000 Units

Contribution Margin on 20,000 Units = 20,000 X Contribution margin per unit

Contribution Margin on 20,000 Units = 20,000 X \$4

Contribution Margin on 20,000 Units = \$80,000

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