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2 pts D Question 46 Izabel's Ice Skating Company is considering adding a new product line of Speed Skates (SS). There is currently excess productive
2 pts D Question 46 Izabel's Ice Skating Company is considering adding a new product line of Speed Skates (SS). There is currently excess productive capacity that could be used to produce SS. Each SS would sell for $20 and the variable costs per unit would be $15. Expected demand for SS per year is 25,000 units. Of the total fixed costs currently incurred, Izabel plans to allocate $130,000 to the new product line. Should she invest in the new product line? Yes, because profits would increase by $125,000. No, because profits would decrease by $5,000. Yes, because profits would increase by $5,000. She would be indifferent about adding the product line
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