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Pioche Company is considering selling a premium version of one of its products. The following information is available. The additional processing costs are the costs
Pioche Company is considering selling a premium version of one of its products. The following information is available. The additional processing costs are the costs needed to transform the units from standard to premium
Number of units produced
Selling price of standard units $ per unit
Additional processing costs $
Selling price of premium units $ per unit
Before any additional processing costs, the total production cost for the units is $ What will be the change in Pioche Companys net income if the company decides to sell a premium version of this product?
Increase of $
Decrease of $
Decrease of $
No change
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