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Unformatted text preview: Regarding marginal fixed expenses Contribution margin Marketing $17,500 $30,000 $22,000 Fixed expenses: Payroll (not grouped by category) $70,000 Marketing Estimated overhead (not grouped by category) $25,000 Payroll Other items Overhead Marginal tax rate 35% Total fixed expenses Marginal income before taxes Estimated income tax expense Marginal net income- - $69,500 70,000 25,000 164,500 (164,500) (57,575) $(106,925)...
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