Relevance of Inventory Costs to a Business Investment Decision Assume that a wealthy investor is contemplating buying

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Relevance of Inventory Costs to a Business Investment Decision Assume that a wealthy investor is contemplating buying a paper-manufacturing company.

Certain inventory of the paper company is carried at $100,000, including

$40,000 of variable production costs and $60,000 of fixed factory overhead.

How much should the investor pay for the inventory? Why? lop5

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