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25-02-2024
Business

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Company A has 50% of its total variable manufacturing cost in labor and the other 50% in fuel. Company B has 80% of its total variable manufacturing cost in labor and the remainder in fuel. Suppose in a given year labor costs rise 5% and fuel costs rise 10%. Required: a. Using the information above, calculate the percentage increase in total variable cost for each company. (Enter your answers as whole percentages rounded to one decimal place.) b. Which company has the higher percentage increase in total variable cost

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