QUESTION 2 Lourdes Production Corporation (LPC) projects sales of 100.000 units next year at an average price of $50 per unit. Variable costs are estimated at 20% of revenue and fed costs will be $2.4 million Globex has 51 million in bonds outstanding on which it pays 75%, and its marginal tax rates 36%. There are 100,000 shares of stock outstanding which trade at their book value of $30 LPC intends to purchase a machine that will result in a major improvement in product quality along with a small increase in manufacturing efficiency. The machine will cost 51 milion, which will be borrowed 9. The quality improvement is expected to have a significant impact on LPCS competitive position. Indeed, management expects sales to crease by S In spite of a planned to pre increase. The efficiency improvement combined with the price increase will result in variable costs of 36 of revenue. Fixed cost however, will rise by 19. Calculate LPCS DFL and DTL before and after the acquisition of the machine. Do not round intermediate calculations. Round your answers to two decimal Without machine With machine DFL DIL QUESTION 2 Lourdes Production Corporation (LPC) projects sales of 100.000 units next year at an average price of $50 per unit. Variable costs are estimated at 20% of revenue and fed costs will be $2.4 million Globex has 51 million in bonds outstanding on which it pays 75%, and its marginal tax rates 36%. There are 100,000 shares of stock outstanding which trade at their book value of $30 LPC intends to purchase a machine that will result in a major improvement in product quality along with a small increase in manufacturing efficiency. The machine will cost 51 milion, which will be borrowed 9. The quality improvement is expected to have a significant impact on LPCS competitive position. Indeed, management expects sales to crease by S In spite of a planned to pre increase. The efficiency improvement combined with the price increase will result in variable costs of 36 of revenue. Fixed cost however, will rise by 19. Calculate LPCS DFL and DTL before and after the acquisition of the machine. Do not round intermediate calculations. Round your answers to two decimal Without machine With machine DFL DIL