CHAPTER 3

3. Currently, direct labor cost is $125,000 (in the 2,001 to 2,500 range). If production increases by 400 units next year, the company will need to hire one additional direct laborer (the production range will be between 2,501 and 3,000), increasing direct labor cost by $25,000. This increase in activity will require the hiring of one new ... ................
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