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If in a given year a company spends $2 million on new product development, design, and engineering for its entry-level camera line; $4 million on new product development, design, and engineering for its multi-featured camera line; assembles and ships 1,000,000 entry-level cameras and 200,000 multi-featured cameras, then the company’s production costs for new product development expenditures for multi-featured cameras would be

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