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The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer

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The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 25,000 utensils at $0.70 each. Arthur sells its utensils wholesale for $0.80 each, the average cost per unit is $0.78, of which $0.14 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits? $2.500. $500. O $1,500. O $2,000

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