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A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being

A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considereed will have fixed costs of $9,200 per month and variable costs of $0.70 cents per unit produced. Each item is sold to retailers at a price that averages $0.90 cents.

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