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Cowher Co. Produces two products - refrigerators and microwaves ovens. Cowher has the following information All of the variable cost will be avoided if a
Cowher Co. Produces two products - refrigerators and microwaves ovens. Cowher has the following information All of the variable cost will be avoided if a unit is not produced and all of the fixed costs will continue if a unit is not produced as the fixed cost will simply be allocated to the other units that are produced. Example: Assume that a one-time customer comes to Cowher and offers to buy 200 refrigerators if Cowher is able to provide the refrigerators at a lower price than other companies. At this time, Cow her is operating at 60% capacity and has the ability to produce these refrigerators and all of what is currently being produced. What is the unit price Cowher should charge for the refrigerator
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