Kai sells a small magazine full of celebrity gossip to college students for $2.65 per copy. Hiring the printing press for one day, the only fixed cost, is $435 an issue. The variable cost of printing each issue is $0.82 per copy. The printer tells Kai the cost of hiring the press is to increase by $116 per day. If changing to color increases variable costs by $0.40, what is the percentage decrease in contribution margin resulting from the switch to color?

Percentage decrease= 21.86%

Step-by-step explanation:

Giving the following information:

Selling price per unit= $2.65

Current variable cost= $0.82

Increase in variable cost= $0.4

To calculate the unitary contribution margin, we need to use the following formula:

Unitary contribution margin= selling price - unitary variable cost

Unitary contribution margin= 2.65 - 0.82

Unitary contribution margin= $1.83

New contribution margin= 2.65 - 1.22

New contribution margin= $1.43

Finally, the percentage decrease:

Percentage decrease= [1 - (1.43/1.83)]*100

Percentage decrease= 21.86%

false

step-by-step explanation:

the reason i say this is because for a certain length of sides you can pick any two and the length is wither equal or greater than the third side and in this case it's not.

3 + 5 = 8

8 is smaller than 9 which is the third side.

hope this : )