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Saint's Corporation has created an improved version of its existing product and is attempting to decide what to do with the old inventory that is now outdated and thus cannot be sold for its normal selling price which is 12 per unit. Saints has made a deal with one of its competitors to sell the entire inventory of 1,000 units for 2,000. The variable cost of manufacturing these 1,000 units was 8,000 and the fixed cost was 1,000 which of the following statements is true about the relevance of the above facts? A) The 12 selling price, the 9,000 total manufacturing cost, and the 2,000 sales value are all relevant. B) The 2,000 sales value is the only one that is relevant C) The 8,000 variable manufacturing cost and the 2,000 sales value are relevant D) The 12 selling price, the 8,000 Variable manufacturing cost, and the 2,000 sales value are all relevant. E) Cannot be determined.
Sagot :
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