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The Harvey Company has provided the following information about its only product when they sold 10,000 units (all items are per unit). Revenue $15 Direct
The Harvey Company has provided the following information about its only product when they sold 10,000 units (all items are per unit).
Revenue $15
Direct labor cost 1.50
Direct Materials 2.00
Manufacturing overhead 6.00 (1/3 variable, 2/3 fixed)
Selling, general and adminstrative 1.00 (1/2 is variable, 1/2 is fixed)
Profit before tax $4.50
For every additional unit sold above 10,000, the company's profit before taxes will increase by:
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