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5 Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is avallable. The
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Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is avallable. The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per mont This change would require $5,000 additional fixed costs per month. (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) 4. Suppose the company determines that it can increase Product G's maximum sales to 700 units per month by spending $4,000 per month in marketing efforts. Should the company pursue this strategy and the double shift? Compute total incremental income. 4. Suppose the company determines that it can increase Product G's maximum sales to 700 units per month by spending S4,000 per month in marketing efforts. Should the company pursue this strategy and the double shift? Compute total incremental income Step by Step Solution
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