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Fallon Company makes units, and each unit requires 3 pounds of material

/in /by

Fallon Company makes units, and each unit requires 3 pounds of material

at $2 per pound. 500 and 700 units will be built in May and June, respectively. Fallon keeps material on hand at 20% of the next month’s production needs. How much is the material cost for May’s output?

 
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