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Savane Enterprises sells a single product at a price of $57 per unit. Variable costs per unit are $35 and total fixed costs are $719,400.
Savane Enterprises sells a single product at a price of $57 per unit. Variable costs per unit are $35 and total fixed costs are $719,400. Savane is considering the purchase of new equipment that would increase fixed costs to $1,023,700, but decrease the variable cost per unit to $28. (a) If Savane expects to sell 40,000 units next year, should the company purchase this new equipment? The company purchase the new equipment. eTextbookand Media Attempts: unlimited (b) The parts of this question must be completed in order. This part will be available when you complete the part above
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