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The manager at Frame Manufacturing reported the variable cost to product Frame A was $22 per unit and its selling price was $30. The manager
The manager at Frame Manufacturing reported the variable cost to product Frame A was $22 per unit and its selling price was $30. The manager has an option to stop making Frame A and replace that product line with Frame B at a variable cost of $28 and selling price of $44. If the manager decides to keep on producing Frame A: A. the incremental costs are $28 per unit. B. the current profit is $8 per unit. C. the incremental revenues are $44 per unit. D. the opportunity costs are $16 per unit. E. None of these are correct.
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