Question
38.It costs Bodhis, Inc. $70 per unit to manufacture 1,000 units per month of a product that it can sell for $100 each. Alternatively, Bodhis
38.It costs Bodhis, Inc. $70 per unit to manufacture 1,000 units per month of a product that it can sell for $100 each. Alternatively, Bodhis could process the units further into a more complex product, which would cost an additional $40 per unit. Bodhis could sell the more complex product for $145 each. How would processing the product futher affect Bodhis's profit?
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42 Jasmine Company produces hand tools. A sales budget for the next four months is as follows: March 10,000 units, April 13,000, May 16,000 and June 21,000. Jasmine Company's ending finished goods inventory policy is 10% of the following month's sales. March 1 inventory is projected to be 1,400 units. How many units will be produced in April?
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