=+2 Sphere Ltds designers have proposed a change in direct materials that would increase direct materials costs
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=+2 Sphere Ltd’s designers have proposed a change in direct materials that would increase direct materials costs by $3000 per unit. This change would enable Sphere Ltd to install 280 units of equipment each year. If Sphere Ltd makes the change, it will implement the new design on all equipment sold. Should Sphere Ltd use the new design? Show your calculations.
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Ankur Gupta
I have a degree in finance from a well-renowned university and I have been working in the financial industry for over 10 years now. I have a lot of experience in financial management, and I have been teaching financial management courses at the university level for the past 5 years. I am extremely passionate about helping students learn and understand financial management, and I firmly believe that I have the necessary skills and knowledge to effectively tutor students in this subject.
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Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan
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