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Division x of Harvest agricultural machinery ltd was considering adding a small weeding implement to their product range. Sufficient capacity was currently available to cope
Division of Harvest agricultural machinery ltd was considering adding a small weeding implement to their product range. Sufficient capacity was currently available to cope with the additional production, but an extra specialpurpose machine costing would have to be acquired and paid for immediately prior to commencement of production. The machine could be traded in at the end of year five for
A new sales promotion programme would be mounted to market the new product and this would cost at the commencement of production and at the end of the first year.
The management accountant produced the following forecast figures relating to the proposed net product:
tableYearSales,tableVariableCosttableFixedCost
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