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machine thar would cost $420,000 and would last for 8 years. A would have a salvage value of $97,000. The machine 576,000 per year. The

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machine thar would cost $420,000 and would last for 8 years. A would have a salvage value of $97,000. The machine 576,000 per year. The company requires es in this pnoblem) Your Corporation is projects. Determine the net Your Company produces three products, with costs and selling prices as follows: Product A Product B Product C 520 25,000 75% 25,000 $15 40% Demand in units Selling price per unit Variable costs ratio $30 60% has a limit of 80,000 machine hours for the constrained resource. What is the maximum contribution margin Your Company can make? C. $325,000 D. $322,500 A. $ 225,000 B. $363,000 10. Your Company makes a single product. It currently sells 30,000 units each year. The company has the capacity to produce 40.000 units per year. Per unit costs to produce and sell one unit at that activity level are: Direct material.s.$20 $10 $5 Direet labor Variable manufacturing overhead. Fixed manufacturing overhead$7 $8 Variable selling expense.... $2 Fixed selling expense The regular selling price for one unit is $60. A special order has been received to purchase 8,000 units at 15% of the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 25%. However, the material cost would increase by $2 per unit and Your Company would have to purchase a specialized machine to engrave each unit in the special order. This machine would cost 12,000 and it would have no use after the special order was filled. If the special order is ccepted, the effect on net operating income next year would be a: $52,000 increase $80,000 increase $84,000 increase $36,000 decrease

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