If the air-conditioning system for a 200,000 ft2 building is estimated to be 400 ft2 per ton and to cost $4000 per ton, then what will be the system cost? And If, through load management, the system capacity for the building in above problem is reduced by 10%, will the system cost be reduced by 10%? If not, why?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per...
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If the air-conditioning system for a 200,000 ft2 building is estimated to be 400 ft2 per ton and to cost $4000 per ton, then what will be the system cost? And If, through load management, the system capacity for the building in above problem is reduced by 10%, will the system cost be reduced by 10%? If not, why?
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