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Use the following to answer questions :
-(Table: Production Possibilities in the United States and Colombia) Look at the table Production Possibilities in the United States and Colombia. Which country should export coffee and which country should export computers? Justify your answer.
Variable Manufacturing Overhead
Indirect manufacturing costs that fluctuate with production volume, such as utility costs for running production equipment.
Fixed Manufacturing Overhead
The total of all production costs that do not change with the level of output, including salaries, rent, and insurance.
Depreciation
The allocation of the cost of an asset over its useful life, reflecting the loss in value over time.
Master Budget
An inclusive financial planning document that combines all of a company's individual budgets and plans for a specific period.
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