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Mirage Incorporated produces a product with the following information for next month: Variable costs per unit $40 Total Fixed costs $20,000 Budgeted production 1,000 units
- Mirage Incorporated produces a product with the following information for next month:
Variable costs per unit | $40 |
Total Fixed costs | $20,000 |
Budgeted production | 1,000 units |
- With the recent recession, the firm is experiencing a slowdown in demand and the only offer they have for their product is a company who will buy all 1,000 units at $57 per unit. Mage are confident that demand will pick up in the next few months. Should they accept the offer?
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