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the manufacturing overhead is forecasted to be fixed at RM1.25 million.
If no contract is taken, RM650,000 could be saved.
If output drops to 50,000 units and below, another saving of RM50,000 can be made.
what is the incremental fixed cost for a supply of 50,000 units?This is also one of the example from my lecturer first-hand
My answer for incremental fixed cost is
(RM650,000-RM50,000)/ 50,000 units
=RM12Is is correct?
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