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Breakeven analysis and target profit, taxes, what - if analysis Pome Company produces a sin - gle product: the Core. The following table provides the
Breakeven analysis and target profit, taxes, whatif analysis Pome Company produces a sin gle product: the Core. The following table provides the Cores details:
Per unIt
Sellingprice $
Materials cost
Labor cost.
Variable overhead cost.
Sales commissions. of selling price
For the upcoming year, Pome Company expects to sell units of the Core, have total fixed costs of $ and face a tax rate of of income. c The marketing manager believes that if the Cores price is cut by $ unit, sales will increase by Is this change desirable from a financial perspective?
dIgnore part c when answering this question. The production manager believes that if Pome Company rents a new machine, total manufacturing variable costs materials labor, and overhead per unit will each drop by What is the annual rent for this machine so that the income with this machine will equal the income in part a $
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