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The Company is experimenting with new engineering techniques and believes it can reduce variable cost to $ 4 . 0 per unit and significantly improve

The Company is experimenting with new engineering techniques and believes it can reduce variable cost to $4.0 per unit and significantly improve the product. The innovations would double fixed costs but the company expects to be able to increase sales to 3,800 units. If this strategy is pursued the company's budgeted net income will:
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