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Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 80,000 units at $5.00/unit. Below is
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 80,000 units at $5.00/unit. Below is a listing of estimated expenses: Category Materials Labor Overhead Marketing/Admin Total Annual Expenses $90,000 $80,000 $60,000 $80,000 of Annual Expense that are Fixed 20% 20% 30% 40% A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price. No U.S. home office expenses will be allocated to the new facility. The unit variable cost for Garfield Corporation is A. $4.88. B. $3.83. C. $1.83. D. $2.83
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