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Gene Company expects to operate at 90% of productive capacity. Total manufacturing costs for the production of 10,000 batteries are budgeted as follows: Gene Company

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Gene Company expects to operate at 90% of productive capacity. Total manufacturing costs for the production of 10,000 batteries are budgeted as follows: Gene Company normally sells its GeneUS brand battery for exist4 each. It has the opportunity to sell an additional 1,000 generic-labeled batteries for exist2 50 each. The additional sales will not interfere with normal production or increase selling or administrative expenses. Gene Company should take the offer and make a differential income of exist1, 400 reject the offer and avoid a differential loss of (exist1, 500) reject the offer and avoid a differential loss of (exist 100) take the offer and make a differential income of exist100

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