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I need help finding an annual fixed cost for this data Acquired $805,000 of cash from the owners. Purchased $380,000 of manufacturing equipment. The equipment
I need help finding an annual fixed cost for this data
Acquired $805,000 of cash from the owners. Purchased $380,000 of manufacturing equipment. The equipment has a $40,000 salvage value and a four-year useful life. Label the purchase of the equipment as Event 2a and the recognition of depreciation as Event 2b. The company started and completed 5, 600 modems. Direct materials purchased and used amounted to $51 per unit. Direct labor costs amounted to $36 per unit. The cost of manufacturing supplies used amounted to $7 per unit. The company paid $61,000 to rent the manufacturing facility. Magnificent sold all 5, 600 units at a cash price of $175 per unit. The sales staff was paid a $5 per unit sales commission. Paid $50,000 to purchase equipment for administrative offices. The equipment was expected to have a $4, 100 salvage value and a three-year useful life. Label the purchase of the equipment as Event 9a and the recognition of depreciation as Event 9b. Administrative expenses consisting of office rental and salaries amounted to $73, 600Step by Step Solution
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