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Required information [The following information applies to the questions displayed below.) Horton Manufacturing Incorporated (HMI) is suffering from the effects of increased local and global

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Required information [The following information applies to the questions displayed below.) Horton Manufacturing Incorporated (HMI) is suffering from the effects of increased local and global competition for its main product, a lawn mower that is sold in discount stores throughout the United States. The following table shows the results of HMI's operations for the most recent year. Sales (12,500 units @ $84) Variable costs (12,500 @ $63) Contribution margin Fixed costs Operating profit (loss) $ 1,050,000 787,500 $ 262,500 296,100 $ (33,600) es 7. Refer to the original data. During the year, HMI saved $5 of unit variable cost per lawn mower by buying from a different manufacturer. However, changing the plant machinery to accommodate the new part means an additional $50,000 in fixed costs per year. Was this a wise change? Why or why not

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