Lemaire sells its tools wholesale for 1.85 each the average, Ask an Expert

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The Lemaire Company manufactures wiring tools. The company is currently producing well below its full capacity. The Boisvert Company has approached Lemaire with an offer to buy 10,000 tools at $1.75 each. Lemaire sells its tools wholesale for $1.85 each; the average cost per unit is $1.83, of which $0.27 is fixed costs. If Lemaire were to accept Boisvert's offer, what would be the increase in Lemaire's operating profits?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M959432

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