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Dillon Inc. Contribution margins and target profits

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February 12th, 2023

In 2006, Dillon Inc. had a total contribution margin of $100,000 and net income of $60,000. For the upcoming year, the company would like to earn a target profit of $80,000. Assuming sales volume is expected to be the same in the upcoming year as it was in the past year, give three separate options the company could implement in order to achieve their target profit in the upcoming year.

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