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The Bike Manufacturing Company Has Idle Manufacturing Capacity and Is

Question 64

Multiple Choice

The Bike Manufacturing Company has idle manufacturing capacity and is considering themanufacture of a new line of bikes. Which of the following costs is irrelevant with respect to thedecision to manufacture the new line of bikes?


A) The salary of the new production manager who would have to be hired.
B) The cost of the new manufacturing equipment which would have to be purchased.
C) The monthly rental on the manufacturing facility used to produce bikes.
D) The costs associated with marketing and selling the new line of bikes.

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