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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)

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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