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a) Consider the fixed asset cost of the Limited Production and Full Production scenarios. Some managers...

a) Consider the fixed asset cost of the Limited Production and Full Production scenarios. Some managers believe that these costs are S890, 000 and $480,000, respectively, which are the amounts that would have to be spent if all the necessary assets are purchased. Others argue that these costs should be reduced by $90,000, which is the amount of space and equipment that would be saved if production of the existing cleat is discontinued. Based on information in the case, which set of estimates is most appropriate? Explain.

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