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2) Knitwear Inc. is considering three countries for the sole manufacturing site of its sweater-Singapore, Thailand, and Canada. All sweaters are to be sold
2) Knitwear Inc. is considering three countries for the sole manufacturing site of its sweater-Singapore, Thailand, and Canada. All sweaters are to be sold to retail outlet in Canada at $32.00. The three countries differ in their fixed costs and variable costs per sweater. Annual fixed costs Variable manufacturing costs per sweater Variable marketing and distribution costs per sweater Singapore Thailand Canada 6.5 million 8 11 4.5 million 5.5 11.5 12.0 million 13 9 1) Compute the breakeven point in units and revenues for each country. 2) If Knitwear sells 800 000 units what would be the operating income for each country.
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