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Sandhill Light Bulbs management anticipates selling 3,000 light bulbs this year at a price of $16 per bulb. It costs Sandhill $9 in variable costs
Sandhill Light Bulbs management anticipates selling 3,000 light bulbs this year at a price of $16 per bulb. It costs Sandhill $9 in variable costs to produce each light bulb, and the fuxed costs for the firm are $10,000. Sandhill has an opportunity to sell an additional 1,000 bulbs next year at the same price and variable cost, but by doing so the firm will incur an additional fixed cost of $4,000. Should Sandhill produce and sell the additional bulbs? (If an amount reduces the account balance then enter with negative sign, eg. - 125.) The additional sales would change Sandhill's EBIT by $ and therefore Sandhill producean
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