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Jones, as her first assignment, is asked by the president to comment on the budgeted income statement. Specifically, the president feels that capacity might be

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Jones, as her first assignment, is asked by the president to comment on the budgeted income statement. Specifically, the president feels that capacity might be better used with a different sales mix. He wants to know just how much it is costing the company in lost profits to supply the full needs of the three big gold-mining customers. He feels that it might be more profitable to produce only the 1-inch rods

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