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A small manufacturer that makes clothespins and other household products buys new injection moulding equipment for a cost of $500,000. This will allow the manufacturer
A small manufacturer that makes clothespins and other household products buys new injection moulding equipment for a cost of $500,000. This will allow the manufacturer to make more clothespins in the same amount of time with an estimated increase in sales of 15%. If the manufacturer currently makes 75 tons of clothespins per year, which sell at $18,000 per ton, what will be the increase in revenue next year from the new equipment? $20,700 $80,500 $202,500 $857,000 $1,350,000 Athabasca Ag is purchasing 1,000 grain bins at a cost of $40,000 each. Each bin also has a $5,000 delivery and installation cost, and the bins have a capital cost allowance (CCA) rate of 25%. What is the total incremental undepreciated capital cost (UCC) for year 1? $40 million $45 million $22.5 million $20 million $15 million
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