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Frontier seed company believes it has achieved sufficient

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Frontier Seed Company believes it has achieved sufficient size that it could add up to 100 acres of seed production without adding any fixed costs and reducing its variable costs by 15% on the additional acres. Currently, its 650 acres generate revenue of $15,000 per acre with a variable cost of $2,500 per acre and fixed costs of $1,000,000. If it adds 100 acres how much will its profits increase, assuming no rise in prices?

Reference no: EM132407317

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