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Problem - Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,200 and the total manufacturing overhead cost is $1.230, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,650, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost?
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