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A small manufacturer that makes clothespins and other household products buys new injection moulding equipment for a cost of $500,000. This will allow the manufacturer
A small manufacturer that makes clothespins and other household products buys new injection moulding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 15%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment? OA. $80,500 OB. $202,500 OC. $20,700 OD. $857,000 OE $1,350,000
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