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C&A currently has fixed costs of $200 per month and variable cost of $40 per unit for its production operations. They are considering the purchase of a new equipment that will raise the fixed costs to $500 per month but reduce the variable cost to $30 per unit. For what range of output would the new equipment be purchased?
Less than 40
More than 40
More than 30
Less than 30
Equal to 30
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