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problem 4 A company has an installed production capacity of 1,00,000 units and presently it is working at 70% capacity utilization. As production capacity utilization

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problem 4 A company has an installed production capacity of 1,00,000 units and presently it is working at 70% capacity utilization. As production capacity utilization increases, cost per decreases as follows: Capacity utilization 70% 80% 90% Cost per unit $97 $92 $87 $82 100% The company has received three export orders from different sources as under: Source A - 5,000 units at $55 per unit Source B - 10,000 units at $52 per unit Source C - 10,000 units at $51 per unit - Advise the company whether any or all the export orders should be acceptedor

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