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Tyler Company currently sells 1,000 units of product M for $1 each. Variable costs are $0.40 and avoidable fixed costs are $400. A discount store
Tyler Company currently sells 1,000 units of product M for $1 each. Variable costs are $0.40 and avoidable fixed costs are $400. A discount store has offered $0.80 per unit for 400 units of product M. The managers believe that if they accept the special order, they will lose some sales at the regular price.Determine the number of units they could lose before the order became unprofitable.
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