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Steve Company manufactures a product that is expected to incur $20 per unit in variable production costs and sell

for $ 32 per unit. The sales commission is 10​% of the sales price. Due to intense​ competition, Steve actually sold 400 units for $ 30 per unit. The actual variable production costs incurred were $ 22.50 per unit. Calculate the total contribution margin and contribution margin ratio at the expected​ price/costs and the actual​ price/costs. How might management use this​ information?


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