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Markham Industries Is Studying the Profitability of a Change in Operation

Question 18

Multiple Choice

Markham Industries is studying the profitability of a change in operation and has gathered the following information:
Markham Industries is studying the profitability of a change in operation and has gathered the following information: Should Markham Industries make the change? A) Yes, the company will be better off by $6,000. B) No, because sales will drop by 3,000 units. C) No, because the company will be worse off by $4,000. D) No, because the company will be worse off by $22,000. E) It is impossible to judge because additional information is needed.
Should Markham Industries make the change?


A) Yes, the company will be better off by $6,000.
B) No, because sales will drop by 3,000 units.
C) No, because the company will be worse off by $4,000.
D) No, because the company will be worse off by $22,000.
E) It is impossible to judge because additional information is needed.

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