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Canzales incorporated makes and selis a single product. The current seting price is $36 per urit. Variatile expenses are $17 per urvit. and fixed ewpeches

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Canzales incorporated makes and selis a single product. The current seting price is $36 per urit. Variatile expenses are \$17 per urvit. and fixed ewpeches totat $35,500 per month Sales volume for March totaled 4.780 urite: Aequired: a. Calcuiate operating income for March. b. Calculate the hreakeren point in terms of units soid and total revenues. c. Management is considering installing automated equipment to reduce direct labor cost. If this were done, vanobte expenses would drop to \$11 per unit, but fixed expenses wouid increase to $60,100 per month. 1. Cakculate operating income at a volume of 4,780 units per month with the new cost structure. 2. Calculate the breakeven point in units with the new cost structure 3. Why would you suggest that management seriousty consider investing in the automated equipment and accept the new cost structure? 4. Why might management not accept your recommendation but decide instead to maintain the old cost structure? Complete this question by entering your answers in the tabs below. ilate operating incorme for March

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