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The Central Valley Company is a manufacturing firm that produces and sells a single product The company's revenues and expenses for the last four months
The Central Valley Company is a manufacturing firm that produces and sells a single product The company's revenues and expenses for the last four months are given below. Required: Management is concerned about the lessee experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. Assume that fixed costs are incurred uniformly throughcut the year. Compute the annual profit if 82,000 units are sold during the year. Calculate the change in profit r the selling price were reduced by $11.5 each and annual sales were to increase by 7, 800 units. Determine the change in profit if the company were to increase advertising by $114,000 and it this were to increase sales by 7, 300 units
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