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Bonzai Company grows and sells Bonzai trees. It also makes the pot that holds the trees at a cost of $10 per pot. The cost of the pot includes an allocation of $3 of fixed overhead. The company makes 10,000 trees each year. Potsdam Industries approaches Bonzai and offers to sell it pots for only $9.
Instructions
problem 1: Calculate the impact that purchasing the pots from Potsdam would have on Bonzai's net income.
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