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Aurora Company manufactures and sells a single product, the gadget. Operating at capacity, the company can produce and sell 30,000 gadgets per month. Cost associated

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Aurora Company manufactures and sells a single product, the gadget. Operating at capacity, the company can produce and sell 30,000 gadgets per month. Cost associated with this level of production and sales are as follows: Direct materials $450,000 Direct labour 240,000 Variable overhead 90,000 Fixed overhead 270,000 Variable selling expense 120,000 Fixed selling expense 180,000 Gadgets normally sell for $50.00 each. Fixed manufacturing overhead is constant, on a monthly basis, within the production range of 20,000 to 30,000 gadgets per month. Use this for the following 4 questions

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