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undefined EA7. LO 3.3 Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will
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EA7. LO 3.3 Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.15. The machine will increase fixed costs by $18,250 per year. The information they will use to consider these changes is shown here. Current Units sold Sales price per unit Variable cost per unit Contribution margin per unit Fixed costs Break-even (in units) Break-even (in dollars) Sales Variable costs Contribution margin Fixed costs Net income (loss) 216,000 $ 2.15 $ 1.75 $ 0.40 $ 56,000 140,000 $301,000 $464,400 $378,000 $ 86,400 $ 56,000 $ 30,400Step by Step Solution
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