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What would be the maximum purchase price acceptable to Fun Toys Company? Explain.

Posted on September 28, 2021 by Shady

The new toy Magic Dragon, is an organic plush toy packed in a special bag. The toy will be sold to wholesalers in boxes of 24 toys for $8 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the toy. However, a $90,000 charge for fixed manufacturing […]

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