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A manufacturing company has two production departments, A and B. Department A incurs fixed costs of $80,000 per month and variable costs of $10 per
A manufacturing company has two production departments, A and B. Department A incurs fixed costs of $80,000 per month and variable costs of $10 per unit produced. Department B incurs fixed costs of $120,000 per month and variable costs of $15 per unit produced. If the company produces a total of 10,000 units across both departments, what proportion of the total fixed costs should be allocated to each department?
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