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15. Your company plans to produce a new product, a wireless computer mouse. Two machianhine i mouse, Machines A and B. The price per mouse
15. Your company plans to produce a new product, a wireless computer mouse. Two machianhine i mouse, Machines A and B. The price per mouse will be $25.00 regardless of wh can be used to make the variable costs associated with the two machines are shown below. At the expecteda which machine is used. The fixed and much higher or lower will the firm's expected EBIT be if it uses Machine B rather than Machine A, ie., what is EBITB EBITA? (EBIT: earnings before interest and taxes) Machine A $25.00 $100,000 $15.25 75,000 units Machine B $25.00 $400,000 $9.00 75,000 units Price per mouse: Fixed costs: Variable cost/unit: Expected unit sales: A. $123,019 B. $136,688 C. $151,875 D. $168,750 E. $185,625
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