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Fill in the Blank QuestionFill in the blank question.A company produces a product with a contribution margin per unit of $36. If the company incurs $62,000 in total fixed costs and expects to sell 2,500 units their income would be $.

Question

Fill in the Blank QuestionFill in the blank question.A company produces a product with a contribution margin per unit of 36.Ifthecompanyincurs36. If the company incurs 62,000 in total fixed costs and expects to sell 2,500 units their income would be $.

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Solution

To solve this, we first need to calculate the total contribution margin, which is the contribution margin per unit multiplied by the number of units sold.

Step 1: Calculate total contribution margin 36(contributionmarginperunit)2,500(unitssold)=36 (contribution margin per unit) * 2,500 (units sold) = 90,000

Step 2: Subtract the total fixed costs from the total contribution margin to find the income.

90,000(totalcontributionmargin)90,000 (total contribution margin) - 62,000 (total fixed costs) = $28,000

So, the company's income would be $28,000.

This problem has been solved

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