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hello, please show calculation with step by step Grey Company is conSidering replacing Its existing cutting machine With a new machine that, according to the
hello, please show calculation with step by step
Grey Company is conSidering replacing Its existing cutting machine With a new machine that, according to the manufacturer, is more effiCient In terms of energy consumptiona variable cost of production. In this regard, the company would like to do some nancial planning' including "whatiif" analysis. Budgeted information regarding the two machines is as follows: Item Existing Machine New Machine Variable cost per unit $ 44 $ 48 Fixed costs per' month 33 32,669 $ 49,969 Selling price per" unit :3 55 $ 55 Required: 1, Determine the sales volume at which the costs are the same for both machines, 2, What amount of sales' in dollars, for the new machine would produce a 10% profit margin (that is' a ratio of operating prot to sales oin'B)Step by Step Solution
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