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Required information Skip to question [The following information applies to the questions displayed below.] Corrigan Enterprises is studying the acquisition of two electrical component insertion
Required information Skip to question [The following information applies to the questions displayed below.] Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model no. 6754: Variable costs, $17.00 per unit Annual fixed costs, $986,100 Model no. 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,113,700 Corrigans selling price is $61 per unit for the universal gismo, which is subject to a 5 percent sales commission. (In the following requirements, ignore income taxes.) 2-a. Calculate the net income of the two systems if sales and production are expected to average 41,000 units per year. Model No. 6754 net income = Model No. 4399 net income =
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