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Bright Times Company manufactures table lamps. It purchases 50,000 light bulbs from an outside supplier for $0.60 per unit. Neon Company, a sister company, makes
Bright Times Company manufactures table lamps. It purchases 50,000 light bulbs from an outside supplier for $0.60 per unit. Neon Company, a sister company, makes the same light bulb. Currently Neon has excess production of 70,000 units. Each light bulb is sold for $0.60 per unit and has variable cost of $0.25. Using the negotiated approach, determine the increase in income for Neon Company if the negotiated price between Bright Times and Neon is $0.45.
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