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Question 21 Robert Burchi Corp. can produce two types of light fixtures, the Indoors Model and the Outdoors model. The Indoors Model is sold for
Question 21 Robert Burchi Corp. can produce two types of light fixtures, the Indoors Model and the Outdoors model. The Indoors Model is sold for $150 and has variable costs of $30. The Outdoors Model sells for $220 and has variable costs of $60 The company currently has a sales mix of 23 and expects this trend to continue in the future. Their break-even point is 15,000 units at the current sales mix. Fixed costs equal $2,160,000 The company is considering buying new production equipment. The new equipment will increase the fixed cost by $208,000 per year and will decrease the variable cost of the Indoor and Outdoor Models by $10 and $20, respectively. if total sales are expected to be 21.050 units, what would be the total operating income of the company if it decides to buy the new production equipment $1.000.000 $742.400 $792.000 $326.400 Previous Next MacBook Pro
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