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Arthur, Inc. accepted a job to produce 50 units for a sales price of $8,000 per unit. Arthurs variable costs are $5,000 per unit, and
Arthur, Inc. accepted a job to produce 50 units for a sales price of $8,000 per unit. Arthurs variable costs are $5,000 per unit, and at this level of production, the company had expected their fixed costs would be $2,000 per unit. Now Arthurs customer will only buy 40 units of this product. How much net income (loss) can Arthur expect at this lower level of production?
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