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celiacarranza
Nov 4, 2008, 07:32 PM
company A cost $30 per unit ($20 variable and $10 fixed) to make a product at full capacity that normally sells at $45. Another wholeseller offrs to buy 3,000 at $24 each
company A will incur special shipping cost at $2 per unit. Assuming company has excees operating capacity indicate net income or loss company A will realize by accepting the offer.