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Short Answer Question (2.5 points). A company prepared the following contribution format income statement for the current year: The president believes that the company has

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Short Answer Question (2.5 points). A company prepared the following contribution format income statement for the current year: The president believes that the company has too much fixed expense in the cost structure and would like to replace some of the machinery with direct labor workers. If the change is made the current fixed expenses will decrease by $50.000 and variable expenses would increase by 20%. a. Should the company make the change? State your opinion and reasons in the box below. Include any calculations that help you make the decision. b. Would your answer change if the economy is expected to experience a downturn in the next year and the company expects sales to drop? Support your answer. Short Answer Question (2.5 points). A company prepared the following contribution format income statement for the current year: The president believes that the company has too much fixed expense in the cost structure and would like to replace some of the machinery with direct labor workers. If the change is made the current fixed expenses will decrease by $50.000 and variable expenses would increase by 20%. a. Should the company make the change? State your opinion and reasons in the box below. Include any calculations that help you make the decision. b. Would your answer change if the economy is expected to experience a downturn in the next year and the company expects sales to drop? Support your

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