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In our example, the sales revenue from one shirt is \(\$15\) and the variable cost of one shirt is \(\$10\), so the individual contribution margin is \(\$5\). This \(\$5\) contribution margin is assumed to first cover fixed costs first and…
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Take note that after the marked blue base line, the price starts a sharp increase which reaches the 261.8% extension area. Notice that the price creates a couple of tops there (black arrows), which shows that the price is clearly…