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show steps please direct materials 12 Direct labor 3 hours at $15 per hour depreclation on machine selling price of Saber- $40,000 Currently making and
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direct materials 12 Direct labor 3 hours at $15 per hour depreclation on machine selling price of Saber- $40,000 Currently making and selling 2567 sabers factory capacity 4000 sabers per period. Part 1: determined a) contribution margin ratio b) break even in units c) margin of safety in dollars d) degree of operatin leverage e) current profit/loss Part 2: Palpatine, the head of the marketing department, has proposed the following; Cut the selling price to $85, spend $3000 on advertising. If this is done, Palpatine believes sales will increase by 800 units. Should they do it? How much does income change if they make these changes? Part 3: GO BACK TO ORIGINAL DATA: tuke, the head engineer is all excited about a new machine he saw on "Empire Shark Tank" this machine will save 1.2 hours of labor per saber but will cost $22000 per peniod to rent. Should they rent the new machine? How much does income change if they get the new machine. Part 4: GO BACK TO THE ORIGINALDATA Darth Mol, supervisor of the factory has proposed the following: spend $8 per unit for a switch which makes the light saber double sided. We can increase the selling price $12 per unit Mol is convinced we will only lose 120 customers who wont purchase the superior tight saber Should they keep the original saber or make the new and improved light saber? What is the impoct on income if they so to the new raber Step by Step Solution
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