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Crawford sells three types of games to national toy companies. These games are known internally as Gamma, Omega, and Lambda. Recently the Gamma and Lambda lines have not shown acceptable profits. The most recent monthly results are:
Additional analysis reveals that $150 per month in facility-sustaining selling and administrative cost is charged to each product line. The remaining costs are assumed to vary directly with the number of units sold. Crawford is analyzing the following alternatives:
Required:
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