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A Company Has Provided the Following Data If the Dollar Contribution Margin Per Unit Is Increased by l

question 108

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A company has provided the following data:  Sales 3,000 units  Sales price $70 per unit  Variable cost $50 per unit  Fixed cost $25,000\begin{array} { | l | l | } \hline \text { Sales } & 3,000 \text { units } \\\hline \text { Sales price } & \$ 70 \text { per unit } \\\hline \text { Variable cost } & \$ 50 \text { per unit } \\\hline \text { Fixed cost } & \$ 25,000 \\\hline\end{array} If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net income will:

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Definitions:

Cultural Exposure

Cultural Exposure involves experiencing and being influenced by the customs, practices, and traditions of cultures different from one's own.

Mathematical Skill

The ability to perform calculations, understand mathematical concepts and theories, and solve mathematical problems.

Verbal Explanations

The process of making something clear or understandable through spoken or written language.

Categorization

The organization of information into coherent meaningful groups.

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