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Suppose that next year, all revenues and costs are expected to remain the same except for direct fixed overhead expense, which will go up by

  1. Suppose that next year, all revenues and costs are expected to remain the same except for direct fixed overhead expense, which will go up by $10 000 for one of the product lines due to costs related to new equipment. Does it matter which line (sweaters or jackets) requires the new equipment? Why?

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