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8. value: 10.00 points Question 8 (of 8) Cora Corporation produces refrigerator units The company's normal production and sales volume of Standard units is

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8. value: 10.00 points Question 8 (of 8) Cora Corporation produces refrigerator units The company's normal production and sales volume of Standard units is 4,000 units per month, and units sell for $910 each. The costs of manufacturing and marketing a Standard model are as follows: Variable manufacturing cost per unit Variable marketing cost per unit Fixed product cost Fixed period cost $ 280 60 400,000 320,000 The company is considering diversifying the product line to include two additional models, Economy and Deluxe, which would sell for $770 and $910 per unit, respectively. The costs of manufacturing these new models are as follows: Economy Deluxe Variable manufacturing cost Variable marketing cost 41% below Standard 5% above Standard $ 535 Twice Standard Total fixed product and period costs are expected to remain unchanged. Cora expects to sell 1,000 units of the Economy model and 1.350 units of Deluxe model per month. The company cannot expand its production capacity beyond its current level of 4,000 units. Required: 1. If Standard Model is the only product, what would the Operating income be? Operating income 2-a. Suppose that a supplier is willing to supply 1,050 units of the Standard model at a price of $280 per unit. Also assume that the company can sell all that it can produce of the remaining two models. Should the offer of the supplier be accepted?

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