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manager believes that if a new machine is leased for $208,000 per year, modfications can be madn to the grobiatin in eonth its retail value.

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manager believes that if a new machine is leased for $208,000 per year, modfications can be madn to the grobiatin in eonth its retail value. These modifications will increase variable costs by $16,00 per unit, out Elmwored is $138 each. c. The leasing company is wiling to negotiate the price of the machine lease. Whatis the most Elmwrod woigo be wing a-1. Should Elmwood modify the units or sell them as 15 ? Required: a-2. How much will the decision affect profit? difled units to make ir worthwhile to modity thener? lease the machine If Elmwood plans to charge $138 for the modified units

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