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) texas Company produces and sells 22.00 units of a single product. Cost associated with this level of production are as follows: Direct materials Direct
) texas Company produces and sells 22.00 units of a single product. Cost associated with this level of production are as follows: Direct materials Direct manufacturing labor $15 per unit $45 per unit Variable manufacturing overhead $25 per unit Fixed manufacturing overhead $40 per unit Variable selling costs $10 per unit Fixed selling costs $10 per unit The product normally sells for $160 per unit Texas Company has received a special order to sell 2.000 units at $120 per unit With the special order, variable selling costs will increase by $5 per unit to $15 per unit. Texas Company has excess production capacity. Required: A) Compute the gross margin for the sales of 22,000 units. max opt B) Compute the contribution margin for the special order of 2.000 units. max opt gensen Company is considering the replacement of equipment used in ons. The following data are available: Old Equipment $210,000 New Equipment $40,000 ginal cost Useful life in years Current age in years Book value Disposal value now Disposal value in 7 y $65,000 0 $30 000
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