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XYZ Manufacturing Co. produces and sells siding for houses. The financial information for the 2020 fiscal year is as follows: XYZ Manufacturing Co. Sales $3,300,000

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XYZ Manufacturing Co. produces and sells siding for houses. The financial information for the 2020 fiscal year is as follows: XYZ Manufacturing Co. Sales $3,300,000 Variable Costs $1,800,000 Fixed Costs $1.425,000 Net Operating Income $ 75,000 XYZ Manufacturing operated two plants. One plant is located in Atlanta, Georgia and it supplies the southeast United States. The second plant is located in Little Rock, Arkansas and it supplies the southwest United States. On January 1, 2020 (1" day of the fiscal year) the Atlanta facility had operating assets of $480,000 and the Little Rock facility has operating assets of $800,000. On December 31, 2020 the Atlanta facility has operating assets of $440,000 and the Little Rock facility has operating assets of $970,000. XYZ Manufacturing required a return on its assets of 5%. The southwest United States is responsible for 55% of the total sales revenue. The Little Rock facility is responsible for 57.5% of the variable costs. The additional variable costs are almost all related to additional delivery charges because of the difference in the size of the sales areas and the fact that the Atlanta facility is more centrally located within the sales area of the $1,425,000 fixed costs, $575,000 are traceable to the Atlanta facility and S700,000 are traceable to the little Rock facility. (10 points) The President of the company has decided to give a bonus of $50,000 to be shared among the employees of one facility or the other - it cannot be split between the two fie., the bonus goes to Atlanta and Little Rock gets nothing or the bonus goes to Little Rock and Atlanta gets nothing). The President wants your recommendation as to which facility gets the bonus and the reasons why that facility is more deserving of the bonus. What do you tell the President

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