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nani122
11.11.2020 •
Mathematics
Kai sells a small magazine full of celebrity gossip to college students for $2.65 per copy. Hiring the printing press for one day, the only fixed cost, is $435 an issue. The variable cost of printing each issue is $0.82 per copy. The printer tells Kai the cost of hiring the press is to increase by $116 per day. If changing to color increases variable costs by $0.40, what is the percentage decrease in contribution margin resulting from the switch to color?
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Ответ:
Percentage decrease= 21.86%
Step-by-step explanation:
Giving the following information:
Selling price per unit= $2.65
Current variable cost= $0.82
Increase in variable cost= $0.4
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 2.65 - 0.82
Unitary contribution margin= $1.83
New contribution margin= 2.65 - 1.22
New contribution margin= $1.43
Finally, the percentage decrease:
Percentage decrease= [1 - (1.43/1.83)]*100
Percentage decrease= 21.86%
Ответ:
dammmn tuff
Step-by-step explanation: