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Business, 16.04.2021 18:50 nathanphelps2468

The company is now using only 70% of its normal capacity; it could fully use its normal capacity by processing the assembly further and selling it for $51 per unit. If the company does this, material and labor costs will each increase by $2 per unit and variable overhead will go up by $1 per unit. Fixed costs will increase from the current level of $160,000 to $225,000. Required:
Prepare an analysis showing whether Jensen should process the assemblies further.

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