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Creative Solutions sells office-organizing units for small businesses. The current selling price per unit is $320. Operating Income for 2012 is $400,000 based on a

Creative Solutions sells office-organizing units for small businesses. The current selling price per unit is $320. Operating Income for 2012 is $400,000 based on a sales volume of 12,000 units. Variable costs of producing the units are $100 per unit dols plus an additional cost of $20 per unit for shipping and handling. Creative Solutions' annual fixed costs are $2,000,000.

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