Rhetorix inc produces stereo speakers the selling price per


Question - Contribution Margin

Rhetorix, Inc. produces stereo speakers. The selling price per pair of speakers is $1,600. The variable cost of production is $544 and the fixed cost per month is $67,400.

Calculate the contribution margin associated with a pair of speakers.

In August, the company sold 7 more pairs of speakers than planned. What is the expected effect on profit of selling the additional speakers?

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