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Business, 18.02.2021 23:30 mayahgrimes

Cars and Motors Inc. sells 600 cars on average each month for $1,550,000 per unit. Monthly reports show that each unit has a variable cost of $675,000, with 40% on labor and 60% on materials used. Monthly fixed operating costs, such as utilities and lease rentals, are $89,500,000, while monthly fixed financing costs are $18,750,000. Drive and Roll Co., a close competitor, introduced a cheaper unit, causing Cars and Motors, sales to decrease by 15%. By how much percentage change in net income should Cars and Motors expect

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Cars and Motors Inc. sells 600 cars on average each month for $1,550,000 per unit. Monthly reports s...
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