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Given: The Ratty Company manufactures and sells dresses. The variable cost of each dress is...

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Accounting

Given: The Ratty Company manufactures and sells dresses. The variable cost of each dress is 3$, and the unit sale price is 5$. This year they have already sold 6000 dresses and made a profit of 2K$. Required: a) What is their fixed costs, b) What is the CMR; c) If they now sell 1000 dresses at 3.5 $ per dress, by how much will the profit increase. Note: Only correct solutions obtained by using the contribution margin method will merit points.

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