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Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increased per year. The

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Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increased per year. The information they will use to consider these changes is shown here. costs by $19,900 A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places Current New Machine Units Sold 217,000 Sales Price Per Unit $2.15 Variable Cost Per Unit $1.70 Contribution Margin Per Unit $0.45 Fixed Costs $67,500 Break-Even (in units) 150,000 Break-Even (in dollars) $322,500 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $466,550 Variable Costs 368,900 Contribution Margin Fixed Costs $97,650 67,500 $30,150 Net Income (Loss) C. What would your recommendation be to Flanders regarding this purchase

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