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Workers who are classified as direct labour

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Unformatted text preview: ne fixed costs 10 40 Corporate fixed costs 25 25 Average margin per unit $10 $25 The production lines for both products are highly automated, so large changes in production cause very little change in total direct labour costs. Workers who are classified as direct labour monitor the production line and are permanent employees who regularly work 40 hours per week. All costs other than corporate fixed costs listed under each product line could be avoided if the product line were dropped. Corporate fixed costs totalled $125,000, and the total sales amo...
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