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A process has fixed costs of $14,000 per month and variable costs of $0.80 per unit with a selling price at $1.60. The budget projects 40,000 units of sales for the coming month. However, a new process is available that improves operations. The new process doubles the monthly fixed costs, but halves the variable cost. How much will the company SAVE in one month with the new process?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92500300

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