Contribution margin-price is lowered


Baldwin's product manager is considering lowering the price of the Best product by $2.50 and wants to know what the impact will be on the product's contribution margin. Assuming no inventory carry costs, what will Best's contribution margin be if the price is lowered?

34.00%

31.58%

32.30%

30.00%

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Accounting Basics: Contribution margin-price is lowered
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