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  3. the freys realize that they incur the annual $150,

The Freys realize that they incur the annual $150,000 fixed costs mainly to have capacity...

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Accounting

The Freys realize that they incur the annual $150,000 fixed costs mainly to have capacity for their peak production in Year 2. If 75% of the necessary Year 2 units are produced in Year 1, the fixed costs can be reduced by $50,000 per year. Under this plan, what is the Freys cash balance at the end of Year 2?
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