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Question 4 (5 marks) Pat, a pizzeria manager, replaced the convection oven just six months ago. Today, Turbo Ovens Manufacturing announced the availability of a

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Question 4 (5 marks) Pat, a pizzeria manager, replaced the convection oven just six months ago. Today, Turbo Ovens Manufacturing announced the availability of a new convection oven that cooks more quickly with lower operating expenses. Pat is considering the purchase of this faster, lower-operating cost convection oven to replace the existing one they recently purchased. Selected information about the two ovens is given below: New Turbo Oven Existing Oven Original Cost $82.500 $75,000 Accumulated Depreciation - $7.500 Current Salvage Value $55.000 Remaining Life 5 years 5 years Annual Operating Expenses $5,000 $11,000 Disposal Value in 5 years $0 SO Required Determine if the existing oven should be replaced. Show all calculations. Acc 255 - Management Accounting 1 Fall 2020 Lab Assignment 4 - Total 100 marks Chapter 10 & 11 Due: Wednesday, November 4, 2020 Question 5 ( 8 marks) U-Crack-Me-Up Windows, a manufacturer of windows, is experiencing a bottleneck in its plant. Setup time at one of its workstations has been identified as the culprit. A manager has proposed a plan to reduce setup time at a cost of $210,000. The change will result in 1,000 additional windows. The selling price per window is $500, direct labour costs are $145 per window, and the cost of direct materials is $235 per window. Assume all units produced can be sold. Required a. Should the new plan for reducing setup time be implemented based on the throughput margin? Show all calculations. b. Calculate contribution margin for the 1,000 windows. Identify which revenue and/or cost is causing the difference between the contribution margin and throughput margin

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