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Eminen Music produces 60,000 blank CDs on which to record music.The CDs have the following costs:
-Eminem could avoid $4,000 in fixed overhead costs if it acquires the CDs externally.If cost minimization is the major consideration and the company would prefer to buy the 60,000 units externally, what is the maximum external price that Eminem would expect to pay for the units?
Economic Activity
Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.
Exclusive Distribution Rights
These are rights granted usually by a manufacturer to a distributor, allowing them to be the only ones to sell a specific product in a particular area or market.
Reseller
A company or individual that purchases goods or services with the intention of selling them rather than consuming or using them.
Reseller Firms
Companies that purchase goods or services with the intention of reselling them rather than consuming or using them.
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