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QUESTION

Abrams Company manufactures miniature speakers that are built into the headrests of high-end lounge chairs.

Abrams Company manufactures miniature speakers that are built into the headrests of high-end lounge chairs. Based on past experience, Abrams has found that its total annual overhead costs can be represented by the following formula: overhead cost=$350,000+$2.20, where x=number of speakers. Last year, Abrams produced 70,000 speakers. Actual overhead costs for the year were as expected.Required:1.

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