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Question 6 2 pts Johnny's Hockey company is considering adding a new product line of Jerseys. There is currently excess productive capacity that could be
Question 6 2 pts Johnny's Hockey company is considering adding a new product line of Jerseys. There is currently excess productive capacity that could be used to produce Jerseys. Each Jersey would sell for $45 and the variable costs per unit would be $40. The expected demand is 30,000 units. Of the total fixed costs currently incurred, Johnny plan's to allocate $140,000 to the product line. Should the Jerseys be added? 0 Yes, because profits would increase by 10,000 O No. because profits would decrease by 10,000 O He would be indifferent to adding the product line 0 Yes, because profits would increase by 150,000 Question 22 2 pts Budgeted sales in units for Dylan's Discs for January-March are as follows: January 50000 February 60000 March 80000 Dylan wants to maintain an ending inventory of 10% of next months sales. How many units should Dylan produce in February? O 63000 O 68000 O 80000 0 60000
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