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Salem Company produces and sells 4,000 units per month of a certain small home appliance. Total costs per month are $600,000 of which $200,000
Salem Company produces and sells 4,000 units per month of a certain small home appliance. Total costs per month are $600,000 of which $200,000 are variable and $400,000 are fixed. Idle capacity exists to cover a special sales order of 3,000 units per month. The lowest of these proposed prices per unit that would be accepted by Salem Company for this order is: O $73 $62 $21 $17 auchoice
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