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In order to increase the prof margin tor a certain product, a company is total neal savings over the podiuciy ihodut menager estimateg ihsaf 50io
In order to increase the prof margin tor a certain product, a company is total neal savings over the podiuciy ihodut menager estimateg ihsaf 50io o rourchese a cuslom-made machine for $5,00 00. unil and 50.95 per ni, respeclively. The product manager estimates thai 500,o00 units of the product will be manufactured and so each year with a product life cycle of two years, at which time the machine wil be discarded with no salvage value. What is the company's to purchase a custom- made machine for $5,000 000. It is anticipated that the introduction of the new machine will reduce the products variable costs of labor and msintenance by S5.50 per $725,000 $1 450,000 $3 225,000 $ 450,000
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