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Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the coo, is considering hiring an extra worker, whose
Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the coo, is considering hiring an extra worker, whose salary will be $56,000 per year, to solve the problem. With this extra worker, the company could produce and sell 2,900 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.55. Direct materials $3.40 1.00 0.45 Direct labor Variable overhead Fixed overhead (primarily depreciation of equipment) Total 2.70 $7.55 Using the information provided, calculate the annual financial impact of hiring the extra worker. Profit s x
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