Dell has discovered that of the consumers that consider but do not purchase its high end computer model (with a per-unit margin of $1000), half of them are likely to still purchase a Dell entry model (with a $200 margin)

Business May 02, 2023

Dell has discovered that of the consumers that consider but do not purchase its high end computer model (with a per-unit margin of $1000), half of them are likely to still purchase a Dell entry model (with a $200 margin). What is the appropriate contribution margin (in dollars) for the high-end division to use in calculating the true stay-even quantity?

$800

$900

$1000

$1100

$1200