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Question 1 XYZ Co, introduced a new product to the market, product (B), in addition to the current product, product (A). Given the following information:

image text in transcribed Question 1 XYZ Co, introduced a new product to the market, product (B), in addition to the current product, product (A). Given the following information: - The company is currently using DL hours as an allocation base for the co. overhead cost - Total budgeted overhead cost $7,177,500 - The company is using the cost plus pricing model: 30% of the total cost - The company has the following activities to produce products A \& B. Required: The Company noticed that in spite of the increase in demand on product B, there is a decrease in the co's overall profit. Explain why

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