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The VitalChef Corporation manufactures cooking robots. It manufactures its own core engine (CE), a key component that determines the robot processing capacity. It reports the

The VitalChef Corporation manufactures cooking robots. It manufactures its own core engine

(CE), a key component that determines the robot processing capacity. It reports the following cost

information about the costs of making CEs in 2019 and the expected costs in 2020:

image text in transcribed
Current Expected Costs in 2019 Costs in 2020 Variable manufacturing costs Direct material cost per CE $270 Direct manufacturing labor cost per CE 75 Variable manufacturing costs per batch for setups, materials 2,400 handling and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CEs are 480,000 not made Fixed manufacturing overhead costs of plant depreciation, 1,200,000 insurance, and administration that cannot be avoided even if CEs are not made $255 67.5 2,250 480,000 1,200,000

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