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Engineering students are planning for the production and sale of a bicycle accessory, called Warm Cup Holder. While cold water bottles for bikers are common,
Engineering students are planning for the production and sale of a bicycle accessory, called "Warm Cup Holder." While cold water bottles for bikers are common, cups and bottles for hot beverage are not. The design features a quick release mechanism for safe handling during biking and is stronger than the common bicycle water-bottle receptacle. Sale of the garageproduced product, with ample subcontract purchase of plastic molded parts, is to over-thecounter sales, wholesalers, and from their own web site with UPS delivery of product. A prototype product and completed CAD designs are available. The students have estimated the following information: Find the profit before income taxes, yield before income taxes, profit after taxes, yield after taxes, unit operating cost before income taxes, and unit operating cost after taxes. (Hint: Unit operating cost includes direct labor, direct material, overhead or full variable cost, and fixed cost prorated over number of units.)
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