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Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $600 each. An independent catalog company
Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $600 each. An independent catalog company would handle sales for an annual fee of $3,000 plus $70 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $50 per unit.
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