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Assume Andretti Company has sufficient capacity to produce 1 1 3 , 1 0 0 Daks each year without any increase in fixed manufacturing overhead

Assume Andretti Company has sufficient capacity to produce

113, 100

Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by

30 %

above the present

87, 000

units each year if it increased fixed selling expenses by $

150, 000 .

Would the additional investment be justified?

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