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Sunk costs are used by managers to make decisions. True False Chapter 8 Computational Multiple...

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Sunk costs are used by managers to make decisions. True False Chapter 8 Computational Multiple Choice Questions Question 6 2 pts Bob's T-Shirt Company is considering to add a new product line of USF T-Shirts. There is currently excess productive capacity that could be used to produce T-shirts. Each T-shirt would sell for $8 and the variable costs per unit would be $3. The expected demand is 15,000 units. Of the total fixed costs currently incurred, Bob plans to allocate $72,000 to the product line. Should the USF T-Shirt product line be added? O He would be indifferent to adding the product line Yes, because profits will increase by $75,000 Yes, because profits will increase by $3,000 O No, because profits would decrease by 3,000

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