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hey guys!
i need solution of the 47th question from MA1 Specimen Exam, in Answers, only right option is available not solution.
The question is view-able online in image format at this link https://postimg.org/image/6mioliprz/ and the right answer is highlighted.
Can you guys solve this question for me?Thanks.
As you will know from the lectures, the only difference in the profits is due to the increase/decrease in inventory x the fixed production costs per unit.
Here they sell 3000 units more than the produce, so the inventory will fall by 3000 units.
So the difference in profits is 3000 x 7.60 = 22,800
I hope you will understand the above answer.
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