Express Mail offers overnight delivery to customers. It is attempting to come to some conclusion on whether
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Express Mail offers overnight delivery to customers. It is attempting to come to some conclusion on whether to expand its facilities. Currently its fixed costs are \($2\) million per month, and its variable costs are \($2\) per package. It charges \($12\) per package and has a monthly volume of 2 million packages. If it expands, its fixed costs will rise by \($1\) million and its variable costs will fall to \($1.50\) per package. Should it expand?
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