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TB MC Qu. 15-94 Emporia Shipping Company is involved... Emporia Shipping Company is involved in a competitive bidding situation. Variable costs related to the project

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TB MC Qu. 15-94 Emporia Shipping Company is involved... Emporia Shipping Company is involved in a competitive bidding situation. Variable costs related to the project total $700,000, and allocated fixed cost is $97,000. Which of the following cost figures should be used in setting a minimum bid price if Emporia has (1) excess capacity and (2) no excess capacity? Excess Capacity No Excess Capacity A. $ 0 $ 0 B. $700, 000 $700, 000 C. $700 , 000 $797 , 000 D . $797, 000 $700, 000 E. $797, 000 $797, 000 Multiple Choice O Choice A O Choice B Choice C O Choice D O Choice ETB MC Qu. 16-84 Donata Company purchased equipment for... Donata Company purchased equipment for $38,000 in December 20x1. The equipment is expected to generate $12,000 per year of additional revenue and incur $5,000 per year of additional cash expenses, beginning in 20x2. Under MACRS, depreciation in 20x2 will be $6,000. If the firm's income tax rate is 30%, the after-tax cash flow in 20x2 would be: Multiple Choice O $2,100. $3,300. $5,100. O $6,700. O None of the answers is correct

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