Question: Saved Help Saves & Exit Submit Alliance Enterprises is considering extensively modifying their manufacturing equipment. The modifications will result in less wastage of materials, which

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Alliance Enterprises is considering extensively modifying their manufacturing equipment. The modifications will result in less wastage of materials, which will reduce variable manufacturing costs and introduce changes to thc productlon process that will improve product quality. This will allow Alliance to increase the selling price of the product. Annual hxed costs aro expected to increase to

10

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table

[[,

Existing,Modified

], [

Cost Item,Equipment,Equipment

], [

Selling price per unit,

23,

25

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