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Sweetland Candies manufactures jaw-breaker candies in a fully automated process. The company recently purchased a machine that can produce 4.500 candies per month The machine

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Sweetland Candies manufactures jaw-breaker candies in a fully automated process. The company recently purchased a machine that can produce 4.500 candies per month The machine costs $5,000 and is depreciated using straight line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $600 per month. Sweetland currently makes and sells 3,400 jaw-breakers per month. Sweetland buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 30 cents per jaw-breaker. Next year Sweetland expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same. Requirements 1. What is Sweetland's current annual relevant range of output? 2. What is Sweetland's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost? 3. What will Sweetland's relevant range of output be next year? How, if at all, will total annual fixed and variable manufacturing costs change next year? Assume that Gumball could buy an identical machine at the same cost as the one it already has Requirement 1. What is Sweetland's current annual relevant range of output? Sweetland's current annual relevant range of output is 0 to 54,000 jaw-breakers Requirement 2. What is Sweetland's current annual fixed manufacturing cost within the relevant rango? What is the annual variable manufacturing cost? Sweetland's current annual fixed manufacturing costs

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