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Bates Company Plans to Add a New Item to Its

Question 56

Multiple Choice

Bates Company plans to add a new item to its line of consumer product offerings.Two possible products are under consideration.Each unit of Product A costs $6 to produce and has a contribution margin of $3,while each unit of Product B costs $12 and has a contribution margin of $4.What is the differential revenue for this decision?


A) $7
B) $1
C) $6
D) $9

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