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Q. Vega Foods, Inc., has recently purchased a small mill which it intends to operate as one of its subsidiaries. The newly acquired mill has three products which it offers for sale-wheat cereal, pancake mix, and flour. Each product sells for $10 per package. Materials, labour, and other variable production costs are $3.00 per bag of wheat cereal, $4.20 per bag of pancake mix, and $1.80 per bag of flour. Sales commissions are 10% of sales for any product. All other costs are fixed.
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