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E(L0 5] ATI Teck manufactures an electronic component for a high-end computer. The company currently sells 50,000 units a year at a price of $1
E(L0 5] ATI Teck manufactures an electronic component for a high-end computer. The company currently sells 50,000 units a year at a price of $1 80 per unit. These units are produced using a machine that was purchased ve years ago at a cost of $1.2 million. It currently has a book value of $600,000; however, due to its specialized nature, it has a market value today of only $70,000. The machine, which is expected to last another ve years, will have no salvage value. The costs to produce an electronic component are as follows: Direct materials $ 15.00 Direct labour (4 hours >
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