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E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 11,500 seats per year, which it sells for $580 per seat. It incurs variable
E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 11,500 seats per year, which it sells for $580 per seat. It incurs variable costs of $180 per seat and fixed costs of $2,280,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $3,420,000, and its variable costs will decline to $90 per seat. With the class divided into groups, answer the following questions Prepare a CVP income statement based on current activity E-Z Seats CVP Income Statement
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