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Fintel produces dry erase markers that have a selling price of $2.35 and a variable cost of $.70. The contribution margin is Blank______.Multiple choice question.$1.6529.79%$3.05

Question

Fintel produces dry erase markers that have a selling price of 2.35andavariablecostof2.35 and a variable cost of .70. The contribution margin is Blank______.Multiple choice question.1.6529.791.6529.79%3.05

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Solution

The contribution margin is calculated by subtracting the variable cost from the selling price.

So, in this case, the contribution margin would be 2.35(sellingprice)2.35 (selling price) - 0.70 (variable cost) = $1.65.

Therefore, the contribution margin is $1.65.

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