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Bigelow Industries Manufactures Swim Caps

Question 36

Multiple Choice

Bigelow Industries manufactures swim caps. Their operating leverage is 3. Each cap sells for $10 and has a contribution margin of $6. They expect to sell 37,500 swim caps. Their fixed costs are:


A) $55,000
B) $75,000
C) $112,500
D) $150,000

Correct Answer:

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