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School Kids' Compact Disc Store Expanded the Size of Its

Question 103

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School Kids' Compact Disc Store expanded the size of its store in Westfield,NJ two months ago.The owner,Montgomery Brown,has asked you to develop an analysis of the cost structure in his store,as a basis for assessing the profitability of his business.He provides you with account data for the most recent month,which he explains is representative of what these costs are in most months of the year;there is not much seasonality in his business.Last month,May,890 compact discs were sold.This month Montgomery expects to sell 1,100 CDs.

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