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Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. Product G $ 140 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month Product B $ 170 le2 $68 1.0 hours 200 units 2.4 hours see units The company presently operates the machine for a single eight-hour shift for 22 working days each month Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours per day for 22 days per month This change would require $8,500 additional fixed costs per month (Round hours per unit answers to 1 decimal place. Enter operating losses, if any, as negative values.) MC Qu. 80 Soar Incorporated is considering eliminatin... Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of $3,000. The division sales for the year were $1,050,000 and the variable costs were $860,000. The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be
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