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Resolute Company Sells Two Generators-Model a and Model B-For $456

Question 293

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Resolute Company sells two generators-Model A and Model B-for $456 per unit and $394 per unit,respectively.The variable cost of Model A is $406 per unit and of Model B is $304 per unit.The company will generate lower revenues but a higher net income if it sells more of Model B than Model A.

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