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Thats all the question had. The rest (hand writing) is not a part of the wuestion 1. The Atlanta plant is considering producing a new
Thats all the question had. The rest (hand writing) is not a part of the wuestion
1. The Atlanta plant is considering producing a new product. Estimated direct material costs are $14.28 per unit. Labor cost is expected to be $1.87 per unit. New equipment to produce this product will cost $1,560,000. However there is equipment in the Oakland plant that was purchased three years ago and has not been used for two years. This equipment was purchased for $1,300,000 and has a current book value of $975,000. The market value of this equipment is estimated to be $600,000. It would cost $130,000 to ship the equipment to Atlanta and prepare it for use. How much would it cost to produce this product. Bokvae s o the ceedrou Step by Step Solution
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