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Perfect Stampers Makes and Sells Aftermarket Hub Caps

Question 212

Essay

Perfect Stampers makes and sells aftermarket hub caps. The variable cost for each hub cap is $4.75, and the hub cap sells for $9.95. Perfect Stampers has fixed costs per month of $3,120. Compute the contribution margin per unit and break-even sales in units and in dollars for the month.

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Contribution margin: $9.95 sel...

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