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QUESTION

Cinquante Company expects to sell 100,000 units of its product next year, which would generate total sales of $12 million.

Cinquante Company expects to sell 100,000 units of its product next year, which would generate total sales of $12 million. Management predicts that pretax net income for next year will be $3,000,000 and that the contribution margin per unit will be $40.(a)

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