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Please use the following information to answer the following & questions Rebecca . the manager of a division of Ruffware Dog Coats recently received a

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Please use the following information to answer the following & questions Rebecca . the manager of a division of Ruffware Dog Coats recently received a call from senior management that there is an incentive promotion that will pay a $5 000 bonus if profits in the second quarter of 2013 beat before - tax profits from the second quarter of 2012 by more than 10% Rebecca's division had earned before - tax profits of $90 000 in the second quarter of 2012 . Therefore , her division must obtain a before - tax profit of $99 , 000 to earn the bonus . Ruffware uses full absorption , actual costing to determine the before- tax income Her estimated costs are as follows Fixed Costs Management salaries not associated with production ( net cost ) $50 000 Rent of the manufacturing plant ( net cost ) $50.000 Utility charges for the manufacturing plant ( net cost ) $15 000 Variable Costs Rates Sales commissions ( S / dog coats sold ) 0. 10 Maintenance on manufacturing plant ( $ / coat ) 10.50 Direct Materials ( 8 / coat ) 200 Direct Labor ( S/ coat ) 1.25 Rebecca anticipates selling 50 ,000 dog coats in the second quarter of 2013 at a unit price of $8 / coat . " Do not consider the " bonus " as part of the costs in your analysis

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