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Question 1 E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 9,000 seats per year, which it sells for $570 per seat. It
Question 1 E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 9,000 seats per year, which it sells for $570 per seat. It incurs variable costs of $250 per seat and fixed costs of $1,760,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $2,640,000, and its variable costs will decline to $130 per seat. With the class divided into groups, answer the following questions. ? (a) Your answer is correct. Prepare a CVP income statement based on current activity E-Z Scats Sales 5130000 Variable Costs 2250000 Contribution Margin 2880000 Fixed Costs 1760000 Net Income(Loss) 1120000 Attempts: 1 of 3 used
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