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oints eBook Print Qeferences A number of costs are listed below that may be relevant in decisions faced by the management of Svahn, A8, a

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oints eBook Print Qeferences A number of costs are listed below that may be relevant in decisions faced by the management of Svahn, A8, a Swedish manufacturer of sailing yachts: Requirement 1 relates to Case 1, and requirement 2 relates to Case 2. Consider the two cases independently. 1. The company chronically has no idle capacity and the old Model 8100 machine is the company's constraint. Management is considering purchasing a Model 8300 machine to use in addition to the company's present Model 8100 machine. The old Model 8100 machine will continue to be used to capacity as before, with the new Model B300 machine being used to expand production. This will increase the company's production and sales. The increase in volume will be large enough to require increases in fixed sellinq expenses and in general administrative overhead, but not in Prev 1 of 7 EEE Next, >

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