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AudioCables, Incorporated, is currently manufacturing an adapter that has a variable cost of $ 0 . 5 0 per unit and a selling price of
AudioCables, Incorporated, is currently manufacturing an adapter that has a variable cost of $ per unit and a selling price of $ per unit. Fixed costs are $ Current sales volume is units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $ Variable costs would increase to $ but sales volume should jump to units due to a higherquality product.
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