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Osprey Company is trying to decide between the following two alternatives: Projected revenue Direct material Assembly labor Production supervisor's salary Facility-related costs Profit Alternative A

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Osprey Company is trying to decide between the following two alternatives: Projected revenue Direct material Assembly labor Production supervisor's salary Facility-related costs Profit Alternative A $50,000 6,000 9,000 10,000 10,000 $15,000 Alternative B $60,000 12,000 9,000 10,000 15,000 $14,000 Which of the following conclusions can be drawn from this example? Multiple Choice Variable costs are always relevant for decision making. Fixed costs are sunk and thus are never relevant for decision making. O Variable costs are always relevant for decision making O O Fixed costs are sunk and thus are never relevant for decision making. D Relevant costs may include variable costs and fixed costs. None of these answers are correct

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