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Company A manufactures and sells a single product. The company is considering upgrading its current manufacturing facilities with more modern equipment. The unit contribution margin

Company A manufactures and sells a single product. The company is considering upgrading its current manufacturing facilities with more modern equipment. The unit contribution margin in the company's current manufacturing facilities is $50. The unit contribution margin in the upgrading facilities is expected to increase by $10. Additional cost information is as follows:
Current Upgraded
Total Fixed Manufacturing Overhead Costs $43,000?
Total Fixed Selling and Administrative Costs $12,000 $12,000
Assume 6,500 units are expected to be sold. Calculate the level of total fixed manufacturing overhead costs in the upgraded facility at which the company would be indifferent between operating under the current facilities and upgrading.

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