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The marketing manager of Jordan Corporation has determined that a market exists for a telephone with a sales price of $23 per
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Answer #1

*Variable Cost per unit= $14.

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*Fixed Cost + Desired Profit = Contribution Margin;

*$310,400+$118,000= $428,400.

*Sales Unit= Contribution Margin / [Sales Price - Variable Cost];

* 47,600 units = $428,400 / [$23 - $x ];

*[$23 - $x ] = $428,400 / 47,600 units;

*[$23 - $x ] = $9.

$x= $23 - $9;

$x = $14.

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Hence Proved.

Particulars Per Unit Units Amount
Sales $          23 47600 $        1,094,800
Less: Variable Cost $          14 47600 $            666,400
Contribution Margin $             9 47600 $            428,400
Less: Fixed Cost $            310,400
Desired Profit $            118,000

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