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Question 1 of 25 > >> Moving to another question will save this response. Question 1 4 points Save Answer Forrester Company is considering buying
Question 1 of 25 > >> Moving to another question will save this response. Question 1 4 points Save Answer Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised contribution margin ratio would be Oo ooo Question 2 4 points Save Answer K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 80,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate? $0.02 per direct labor hour. $46.25 per direct labor hour. $36.25 per direct labor hour. $10 per direct labor hour. $0.10 per direct labor hour
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