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Electric Scooter Co, makes motorized scooters for city commuters. The scooters can be charged using a regular household plug, and the batteries hold their charge

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Electric Scooter Co, makes motorized scooters for city commuters. The scooters can be charged using a regular household plug, and the batteries hold their charge for 24 hours. The manufacturing plant is currently operating at 70% capacity. The plant manager is considering manufacturing headlights for the scooters, which are currently being produced by an outside company and purchased by Electric Scooter for $14 each. Electric Scooter has the equipment and the workforce to produce the headlights. The engineers have suggested a varlable cost of $3 in direct labour and $4 in direct materials. The plant overhead rate is 150% of direct labour dollars, and 20% of the overhead is fixed cost. Required: 1-a. Calculate the incremental profit in producing the one headlight. (Do not round intermediate calculation and round your final answer to 2 decimal places.) 1-b. Should Electric Scooter make the headlights in-house? Yes 0

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