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Zakir steel sells their product 1000 units for $100,000. Their variable cost 5 points for the 1000 units is $30,000. And a fixed cost of

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Zakir steel sells their product 1000 units for $100,000. Their variable cost 5 points for the 1000 units is $30,000. And a fixed cost of $30,000. Company decides to implement the following policy: 1) Selling price will be reduced to $80/unit. 2) A new manager will be hired with a salary of $5,000. 3) Expected increase in sales 1200 units? Should the company implement this policy? Your answer Zakir steel sells their product 1000 units for $100,000. Their variable cost 5 points for the 1000 units is $30,000. And a fixed cost of $30,000. Company decides to implement the following policy. 1) Company decides to use a material which will increase the cost of materials an additional $5/ unit. 2) Due to this the sale is expected to increase to 1300 units. 3) Company decides to take a smaller factory, as a result rent will be decrease by $5000. Should the Company implement this policy? Your answer V JA

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