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Sales ( 8,000 units at $19.70) $157,600
Variable manufacturing costs $84,800
Fixed manufacturing costs $14,700
Variable selling expenses $10,800
Fixed selling an admin expenses $19,700
Operating income $27,600
Additional production - 2,000 units at $13.50
Increased overhead $1,570
Capacity 10,800 units
Additional profits if business accepted?
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If the school receives actual sales orders for 780 shirts, what amount of profit will the school earn? What is the cost of waste due to excess inventory?
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