24. Kim's Kars sells super-efficient electric cars. The sales price per car is $50,000 and below are the costs of running the company for the current relevant range: Variable Manufacturing Costs Variable Sales Commissions $40,000 per car $5,000 per car Fixed Manufacturing Expenses Fixed Administrative Expenses $1,250,000 per year $ 500,000 per year The company is thinking of eliminating variable sales commissions and instead hiring salaried salespeople. If the company wants to make $400,000 in net income, and believes it can sell 400 cars, how much can the company pay in total salaries for salespeople if it eliminates sales commissions per car? A. $2,350,000 B. $1,850,000 C. $1,600,000 D. $1,100,000 E. None of the above answers can be determined as correct. 25. An espresso machine salesman has approached The Coffee House trying to sell them one of their new Espresso Squeeze machines ("It Squeezes More Espresso" out of fewer beans). The Espresso Squeeze machine will last 3 years and costs $26,000. After 3 years the machine will likely sell for scrap of $2,000. The annual depreciation on the Squeeze machine is straight-line at $8,000 per year. The Squeeze machine will use less coffee for each drink, saving the company $0.04 (four cents) per cup of coffee. Projections are that the company will sell 500,000 cups in total over the next 3 years. Although Vicki would like one of the new Squeeze machines, one month ago she purchased a different brand of espresso machine for $22,000. Both her current machine and the Squeeze machine have the same useful life-3 years. The depreciation on the current machine is $7,000 per year, and after 3 years it can be sold for scrap for $1,000. Because of the new Squeeze Machine is revolutionizing the market, the machine that Vicki paid $22,000 for one month ago can only be sold today for $4,500. All other future costs are the same between owning the current machine and the Squeeze machine. What should Vicki do with regard to the purchase of the new espresso coffee machine? F. Keep the old machine and don't buy the new machine, The Coffee House will be better off. G. Buy the new machine and sell the old machine, The Coffee House will be better off. H. Analysis indicates that The Coffee House is indifferent as to buy the new machine or keep the old machine. L. What the heck, buy the new one and keep the old one too. J. There is not enough information for Vicki (or me) to make a decision