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What would be the increase in arthurs operating profit

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Question: The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The company is currently producing well below its full capacity. The benton company has approached Arthur with an offer to buy 30,000 utensils at $.60 each Arthur sells its utensils wholesales for $.70 each: the average cost per unit is $.68 of which $.14 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profit?

Reference no: EM132745217

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