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Tom Company produces and sells 4,000 units per month of a certain small home appliance. Total costs per month are $600,000 of which $200,000 are

  1. Tom Company produces and sells 4,000 units per month of a certain small home appliance. Total costs per month are $600,000 of which $200,000 are variable and $400,000 are fixed. Idle capacity exits to cover a special sales order of 3,000 units per month. The lowest of these proposed prices that should be accepted by Tom Company for this order is:

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