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confused on 2 and 3. please help 2. Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income
confused on 2 and 3. please help
2. Ofarrell Corporation, a company that produces and sells a single product, has provided its contribution format income statement for March. Sales (7.600 unit) $387,600 Variable expenses 235,600 Contribution margin 152.000 Fixed expenses 103,500 Net operating $48,500 income If the company sells 7.500 units, its net operating income should be closest to: a. $46,500 b. $48,500 c. $47,979 d. $44,000 3. Tawstir Corporation has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. If these computers are upgraded at a total cost of $160,000, they can be sold for a total of $220,000. As an alternative, the computers can be sold in their present condition for $50,000. What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition? a. $720,000 disadvantage b. $10,000 advantage c. $170,000 advantage d. $60,000 advantageStep by Step Solution
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