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Noscot manufactures high-end sunglasses that it sells in retail shops and online for $310, on average. Assume the following represent manufacturing and other costs. he
Noscot manufactures high-end sunglasses that it sells in retail shops and online for $310, on average. Assume the following represent manufacturing and other costs. he variable distribution costs are for transportation to retail partners. Assume the current monthly production and sales volume is 15,000 units. Monthly capacity is 20,000 units. equired etermine the effect of each of the following independent situations on monthly profits. Jote: Do not use negative signs with your answers. A $50 increase in the unit selling price should result in a 2,000 unit decrease in monthly sales. A 10\% decrease in the unit selling price should result in a 6,000 unit increase in monthly sales. However, because of capacity constraints, the last 1,000 units would be produced during over-time with th irect labor costs increasing by 50%. \$ A British distributor has proposed to place a special, one-time order for 1,000 units at a reduced price of $250 per unit. The distributor would pay all transportation costs. There would be additional fixe elling and administrative costs of $750. $
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