The Outback Spectacular show has a shop that sells cowboy style jackets. It has spent...
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The Outback Spectacular show has a shop that sells cowboy style jackets. It has spent $33,000 to purchase 3,000 jackets. Due to changing fashions, they have not been able to sell the jackets at the regular selling price of $20.00. The company is evaluating two alternatives. They could drop the selling price of the jackets to $8 each or they could modify the jackets at a cost of $5,000 and sell them for a total of $32,000. What would be the effect on profit of modifying the jackets as opposed to selling them for $8 each
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