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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
- 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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