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Week3projectchart.docx

Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table.

 

    Alternative 1

    Alternative 2

    Variable costs

    $2.20

    $2.70

    Fixed costs

    $80,000

    $30,000

    Total assets

    $350,000

    $350,000