Ie150 probset#1

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Unformatted text preview: thirds
 of
 fixed
 factory
 overhead,
 which
 represents
 executive
 salaries,
 rent,
 depreciation,
 and
 taxes,
 continue
 regardless
of
the
decision.
Should
the
company
buy
or
make
the
product?
 
 3. The
C
Company
is
a
wholesale
distributor
of
candy.
The
company
serves
grocery,
 convenience
and
drug
stores
in
a
large
metropolitan
area.
Small
but
steady
growth
in
sales
 has
been
achieved
by
the
company
over
the
past
few
years,
while
candy
prices
have
been
 increasing.
The
company
is
formulating
its
plans
for
the
coming
fiscal
year.
Presented
below
 are
the
data
used
to
project
the
current
year’s
net
income
of
$110,400.
 
 Average
sales
price
per
box
 
 
 
 
 $
















4....
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This note was uploaded on 05/19/2011 for the course IE 2 taught by Professor A during the Spring '11 term at University of the Philippines Diliman.

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