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Anytime Best Coffee (ABC) manufactures and sells packets of coffee capsules for use in coffee...

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Accounting

Anytime Best Coffee (ABC) manufactures and sells packets of coffee capsules for use in coffee machines through their website. Management is concerned about a projected drop in the number of units sold and wishes to determine the impact of ABC's cost structure on the profits going forward. The following is the previous month's (May 2021) operating income statement.

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CoursHeroTranscribedText: Revenue (17 500 packets sold) $175,000 Cost of Goods sold Variable manufacturing costs $90,000 Fixed manufacturing costs 30,000 Operating costs Variable marketing costs 15,000 - Fixed marketing and administration costs 25,000

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