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The Engine Guys produces specielized engines for snow climber' buses. The company's normal monthly production volume is 7000 engines, whereas its monthy production capacity is

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The Engine Guys produces specielized engines for "snow climber' buses. The company's normal monthly production volume is 7000 engines, whereas its monthy production capacity is 14,000 engines. The current selling price per engine is $1,100, The cost per unt of manufactuing and marketing the engines at the normal volume is as follows: Required: Answer the following independent questions. 1-o. The Provincial Bus Company wishes to puichase 700 engines in Octobec. The bus company is willing to boy a fixed fee of $840,000 and reimburse The Engine Guys for all manufactuing costs incurred to manufacture 700 motors. October is a busy month for The Engine Guys, and there are sufficient ordess to operate at 100% copacity utiliation. There will be no vartable marketing costs on this government contract. Compute the incremental benefit of the contract

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