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Eric offers to buy Arun's house for $290,000. Arun says, No, but I will sell it to you for $300,000. Eric seems to be

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Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for $300,000." Eric seems to be upset, so Arun says he will sell it for $290,000. 10 f11 f12 prt scr insert + BAN Andretti Company has a single product called a Dek. The company normally produces and sells 87,000 Daks each year at a selling price of $56 per unit The company's unit costs at this level of activity are given below Direct Variable manufacturing Variable selling Total A number of questions relating to the production and sale of Daks follow Each question is independent Required 1 Assume Andre Company has sufficient capacity to produce 121.800 Daks each year without any increase in fed manufacturing overhead costs. The company could increase its unit sales by 40% above the present 87,000 units each year if it increased foed seling expenses by $100,000 what is the financial advantage (disadvantage) of investing an additional $100,000 in fxed selling expenses 10. Would the additional investment be justified? Prev 14 Next > ly 3 5 4 S 6 7 8 C 9 > O W E R T Y U S DF G H K L x CV B N M ' P t 301PM CORE

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