4 thefollowingpriceandcostdataaregivenforfirmsabandc

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Unformatted text preview: 00
 
 Average
variable
costs
per
box

 
 
 

 Cost
of
Candy
 
 
 
 
 
 $
















2.00
 

 Selling
 
 
 
 
 
 
 $
















0.40
 

 Total
 
 
 
 
 
 
 $
















2.40
 
 Annual
Fixed
Costs
 

 Selling
 
 
 
 
 
 
 $



160,000.00
 

 Administrative
 
 
 
 
 
 $



280,000.00
 

 Total
 
 
 
 
 
 
 $



440,000.00
 
 Expected
annual
sales
volume
(390000
boxes)
 
 
 $
1,560,000.00
 
 Candy
manufacturers
have
announced
that
they
will
increase
prices
of
their
products
an
 average
of
15%
in
the
coming
year
due
to
increases
in
materials
and
labor
costs.
The
C
 Company
expects
that
a...
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