The Use of Averages Average labor and materials costs were used in previous challenges, but only as
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Question:
While the additional volume will increase total cost, it will reduce the department's average cost to $9.2S a month per customer. Since the new customers will pay only $9 a month for service, sewing these potential new customers appears to be a losing business?Please make your own averages analysis to confirm if this new business would be acceptable or if it will only incur in losses, assuming that the present estimates are valid?
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