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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

  1. 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

  1. 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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