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7) A company is looking into two alternative methods of producing its product. The following information about the two alternatives is available. If the company's

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7) A company is looking into two alternative methods of producing its product. The following information about the two alternatives is available. If the company's expected sales volume is 42,000 units, which alternative should be selected? Prepare forecasted contribution margin income statements and compute the degree of operating leverage to assess the alternatives. Variable costs per unit..... Fixed costs....... Selling price per unit..... Alternative #1 $2.40 $85,700 $6 Alternative #2 $3.60 $88,200 1000 Cent information relating to this

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