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Vest Food Co.has the Following Operating Data

Question 98

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Vest Food Co.has the following operating data:
Vest Food Co.has the following operating data: The company is contemplating moving to another state where direct labor costs can be reduced,thereby reducing the unit variable cost by 10%.The state where the company currently operates has offered to reduce property taxes to encourage Vest to stay.The minimum amount of property tax savings necessary to keep the company,assuming no other changes,would be A) $152,016. B) $240,000. C) $208,696. D) $125,217.
The company is contemplating moving to another state where direct labor costs can be reduced,thereby reducing the unit variable cost by 10%.The state where the company currently operates has offered to reduce property taxes to encourage Vest to stay.The minimum amount of property tax savings necessary to keep the company,assuming no other changes,would be


A) $152,016.
B) $240,000.
C) $208,696.
D) $125,217.

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