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Austin Inc. produces small-scale replicas of vintage automobiles for collectors and museums. Finished products are built on a 120 scale of originals. The firm's income

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Austin Inc. produces small-scale replicas of vintage automobiles for collectors and museums. Finished products are built on a 120 scale of originals. The firm's income statement showed the following: Revenues (1,590 units) Variable expenses Contribution margin Fixed expenses Operating Income $829,000 474,300 5354,700 319,700 An automated stamping machine has been developed that can efficiently produce body frames, hoods, and doors to the desired scale. If the machine is leased, fixed expenses will increase by $39,000 per year. The firm's production capacity will increase, which is expected to result in a 23% increase in sales volume. It is also estimated that labor costs of $27 per unit could be saved because less polishing and finishing time will be required Required: a. Calculate the firm's current contribution margin ratio and breakeven point in terms of revenues. b. Calculate the firm's contribution margin ratio and breakeven point in terms of revenues if the new machine is leased. c. Calculate the firm's operating income assuming that the new machine is leased d. Do you believe that management of Austin should lease the new machine? Complete this question by entering your answers in the tabs below. Required A Required Required Required Calculate the firm's contribution margin ratio and breakeven point in terms of revenues if the new machine is leased (Round your intermediate calculations to nearest whole number.) Contribution margin ratio Breakeven point Required: a. Calculate the firm's current contribution margin ratio and breakeven point in terms of revenues. b. Calculate the firm's contribution margin ratio and breakeven point in terms of revenues if the new machine is leased. c. Calculate the firm's operating income assuming that the new machine is leased, d. Do you believe that management of Austin should lease the new machine? Complete this question by entering your answers in the tabs below. Required Required Required C Required D Calculate the firm's operating income assuming that the new machine Is lensed. (round your intermediate per unit costs to

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