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I got this question in Sec A. I will be grateful to know the right answer:
A company is considering to implement an automation system. After the implementation, fixed costs will increase to $120,000 from $40,000. The variable cost per unit will fall from $22 to $12.
What is the minimum number of output that has to be produced in order to make the implementation of the system worthwhile?
___________ units.
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