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Business, 21.10.2020 16:01 davisnaziyahovz5sk

Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000. Kent can buy a new production machine that will increase fixed costs by $20,500 per year, but will decrease variable costs by $4.50 per unit. Required:
Compute the contribution margin per unit if the machine is purchased.

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