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Hello, I have a question about unit contribution margin for a case study: I am...

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Accounting

Hello, I have a question about unit contribution margin for a case study:

I am trying to determine if a company (Wallas) should accept a contract based on the information below.

QUESTIONS: 1) What does the negative contribution margin of ($0.41) indicate? Is this the total loss per unit if the deal were accepted?

2) Should they accept the contract?

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7. Based on quantitative calculations, should Wallas accept the school's offer? Why or why not? Special Order Testing Students Male Female Total Total Costs Cost/Student 1.25 0.10 0.46 0.54 1.25 0.37 3.97 122 150 272 Blood Grouping Reagents Gloves Optician Other Consumables Pregnancy Test Kits Transportation and Logistics Total Variable Costs 340.00 S $27.20 $ 125.00 $ $ 146.88 $ $ 187.50 $ 100.00 $ $ 926.58 $ Paid for Servic e$3.00 Expected Revenue816.00 Unit Contribution Margin $(0.41)

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