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The Fruit Company (F Co) currently grows fruit which customers pick themselves from the fields before paying. F Co is concerned that a large number of customers are eating some of the fruit whilst picking it and are therefore not paying for all of it. As a result, it has to decide whether to hire staff to pick and package the fruit instead.
– The total sales value of the fruit currently picked and paid for by customers.
-The total sales value of the fruit if it is picked and packaged by staff instead.1. Could you explain how these two statements are relevant costs?
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