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please give a detailed explanation on the steps. really struggling with this. The CVP income statement for Raquelle Inc Company for 2022 appears below: Instructions
please give a detailed explanation on the steps. really struggling with this.
The CVP income statement for Raquelle Inc Company for 2022 appears below: Instructions Answer the following independent questions and show computations to support your answers: a) How much additional sales revenue does the company need to break even in 2022? b) If the company is able to reduce variable costs by $1.25 per unit in 2023 and other costs and unit revenues remain unchanged, how many units will the company have to sell in order to earn a net income of $50,650 ? Question 2 Kirk Company relies heavily on a copier machine to process its paperwork. Recently the copy clerk has not been able to process all the necessary copies within the regular work week using the existing copier. Management is considering updating the copier machine with a faster model. If sold now, the current copier would have a salvage value of $1,000. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after five years. Prepare an analysis to show whether the company should retain or replace the machine Step by Step Solution
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