Explain whether you agree with the managers reasoning

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Suppose Dell is currently selling 250,000 Pentium 4 laptops permonth. A manager at Dell argues, "The last 10,000 laptops weproduced increased our revenue by $8.5 million and our costs by$8.9 million. However, because we are making a substantial totalprofit of $25 million from producing 250,000 laptops, I think weare producing the optimal number of laptops." Briefly explain whether you agree with the manager's reasoning.

Reference no: EM13243734

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