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QUESTION

Gobi Inc. has a sales of $40,000,000. The contribution margin is 40% and the fixed costs are $3,000,000. The varialbe cost per unit is $12.

Gobi Inc. has a sales of $40,000,000. The contribution margin is 40% and the fixed costs are $3,000,000. The varialbe cost per unit is $12. The company is considering two different strategies or increasing their profits:

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