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Problem 7.3 Darwin's HighFlyer Hotel has spare laundry capadity and is considering offering a laundry service to the Luigi Brothers, whe own three lialian eratisrants.

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Problem 7.3 Darwin's HighFlyer Hotel has spare laundry capadity and is considering offering a laundry service to the Luigi Brothers, whe own three lialian eratisrants. To aiht deliberatiens conorned with what rate should be quoted wben ofiering the scrvice, the luundry manager has asked for your aseistance in analysings the laumalry departinent'i fiznd and variable Frum her departmental records, the laundry manager has extracted the following shedule of cost information. Required a Uxe the biph-low method to determine the laundry department's fixed and variable cost structuren. b. Iravide an estimate of the total cost if 25,000 kilograms of laundry were processed in a month

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