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The following monthly data are available for the Challenger Company and its only product, Product SW: Assume that Challenger Company is currently selling 400 units
The following monthly data are available for the Challenger Company and its only product, Product SW: Assume that Challenger Company is currently selling 400 units of Product SW. Management wants to automate a portion of the production process for Product SW. The new equipment would reduce direct labour costs by $20 per unit but would result in a monthly rental cost for the new robotic equipment of $10,000. Management believes that the new equipment will increase the reliability of Product SW thus resulting in an increase in monthly sales of 12%. Should these changes be made
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