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betty puppy parlor is a pet grooming parlor and boutique. betty sells personalized puppy blankets at...

betty puppy parlor is a pet grooming parlor and boutique. betty sells personalized puppy blankets at $40 each. her contribution margin is $5. if betty has an additional $120 in blanket sales how much additional contribution margin will this produce?

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Answer #1

additional contribution margin will = Additional unit sales * contribution margin per unit

= 3 * 5

=$15

Note : Calculate additional unit

Addtiona sales volume / unit price

= 120 / 40

=3 blanket Units

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