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Coronado, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Saran Company has contacted Coronado with an offer to
Coronado, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Saran Company has contacted Coronado with an offer to sell it 7600 wickets for $22 each. Of Coronado's $9 per unit fixed cost, \$5 per unit is unavoidable. Should Coronado make or buy the wickets and why? Buy because the cost savings is $15200 Buy because the cost savings is $7600 Make because the cost savings is $22800 Make because the cost savings is $7600 Sunland Company gathered the following data about the three products that it produces: Which of the products should not be processed further? Product A Product B Product C Products A and C Concord Corporation is considering the replacement of a piece of equipment with a newer model. The following data has been collected: If the old equipment is replaced now, it can be sold for $65000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. Which of the following amounts is irrelevant to the replacement decision? $392000$130000$327000$65000 Concord Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Assume none of the fixed expenses for the hard rubber line are avoidable. What will be total net income if the line is dropped? $250000$228000$140000$120000
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