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ald The managers at Falcon Industries are considering implementing a new production technique. They have the following data at their disposal: Revenues Direct materials Manufacturing

ald The managers at Falcon Industries are considering implementing a new production technique. They have the following data at their disposal: Revenues Direct materials Manufacturing labour Manufacturing overhead Marketing Operating income Before implementing new technique (Estimates) $500,000 50.000 62.500 67,500 27.500 292.500 After implementing new technique (Estimates) $550,000 42,500 62,500 50,000 40.000 355,000 Falcon has already paid $2,500 to Brown & Associates to carry out an initial feasibility study. Implementing the new technique will also lead to annual payments of $7,500 toward royalties. Which of the following statements is true of Falcon Industries

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