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| Madengrad Company manufactures a single electronic product called Precisionmix. This unit is a batch-density monitoring device attached to large industrial mixing machines used in flour, rubber, petroleum, and chemical manufacturing. Precisionmix sells for $900 per unit. The following variable costs are incurred to produce each Precisionmix device:
Direct labor will increase by 20% and material cost will decrease by 25% after adjustments.The contribution margin percentage after adjustments is
A. 36% B. 34% C. 69% D. 64% |