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IMO Mixcraft is a MUCH superior tool for editing and creating audio. It can handle MP3s natively.

In Mixcraft - under File - select Mix Down to.... and choose MP3. An MXC is just the project file you are saving (and you should if you want to change it around later).

Audacity is a limited program that can only handle single tracks and will not perform the time-slicing you are looking for in Mixcraft. Stay with mixcraft and you'll be fine.
 
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