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REI sells 13,800 units of its product per year. The selling price per unit is $118, and the unlt variable costs is $93. REls manager

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REI sells 13,800 units of its product per year. The selling price per unit is $118, and the unlt variable costs is $93. REls manager is considering to lease a new machine for $293,250 per year, which allows REI to make modifications to the product. After modifications, the unit variable costs will increase by $11.00, but REls manager is hoping to sell the modified product for $148 per unit. a-1. Should REl modify the units or sell them as is? Sell as is Sell with modifications a-2. How much will the decision affect profit? (Use absolute value.) Amount b. What is the least price REI should charge for the modified product (per unit) to make modification worthwhile? (Round your answer to 2 decimal places.) Minimum Soling Price c. The leasing company allows for negotiation. What is the most price REI would be willing to pay to loose the machine if REI plans to charge $148 per unit for the modified product? Maximum Amount

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