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A print shop has contracted to print a number of jobs within 24 hours. Any jobs not completely printed within this time will result in a penalty, as shown in the table above. However too many jobs have been accepted, and not all can be printed. Which jobs should be printed in the next 24 hours?
Variable Cost
Costs that vary directly with the level of production or sales volume.
External Suppliers
Third-party entities that provide goods or services to a company, but are not part of the company itself.
Annual Capacity
The total output a company can produce in a year using its resources efficiently.
Opportunity Cost
Forgoing the potential gains from various choices by settling on one option.
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