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b . Assume that IKEA, a furniture merchandiser and manufacturer, offers a new chair at market price. The unit selling price is slightly higher than
b Assume that IKEA, a furniture merchandiser and manufacturer, offers a new chair at market price. The unit selling price is slightly higher than the unit contribution margin. The company incurs a loss on the sale because it does not cover all of its fixed costs. Why might the company continue to manufacture and sell the new chair, even though the market price does not cover all of its costs? Answer the questions in a short and simple way.
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