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It costs Narcissus Company $12 of variable and $5 of fixed costs to produce one bathroom mirror which normally sells for $35. A foreign wholesaler
It costs Narcissus Company $12 of variable and $5 of fixed costs to produce one bathroom mirror which normally sells for $35. A foreign wholesaler offers to purchase 5,000 scales at $15 each. Narcissus would incur special shipping costs of $1 per scale if the order were accepted. Narcissus has sufficient unused capacity to produce the 5,000 scales
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