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9. Monterey Co. makes and sells a single product. The current selling price is $17 per unit. Variable expenses are $10.2 per unit, and fixed

9. Monterey Co. makes and sells a single product. The current selling price is $17 per unit. Variable expenses are $10.2 per unit, and fixed expenses total $33,680 per month. (Unless otherwise stated, consider each requirement separately.)

e.

What questions would have to be answered about the cost-volume-profit analysis simplifying assumptions before adopting the price cut strategy of part d? (Select all that apply.)

________Does the increase in volume move fixed expenses into a new relevant range? ________Does the increase in volume move variable expenses into a new relevant range? ________Are variable expenses really linear? ________Are fixed expenses really linear

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