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UMPI Manufacturing and ABC Manufacturing create identical products. However, most of UMPI's costs are fixed while ABC's costs are mostly variable costs. Describe the difference
UMPI Manufacturing and ABC Manufacturing create identical products. However, most of
UMPI's costs are fixed while ABC's costs are mostly variable costs.
Describe the difference between fixed and variable costs. Give an example of a variable
costs for a bakery that bakes loaves of bread that sells to retail stores.
Which cost is usually the higher of the two; fixed or variable? Justify your answer with
reasoning.
If sales increase for both companies, which company will realize the greatest increase to
profits?
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