%24 %24 %%24 %24 %24 %24 X My Home ngageNowv2| Online teachir x 2.cengagenow.com/ilm/takeAssignment/takeAssignmentMar.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false O ) (29) Summer Walker - Thro X eBook 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 $20,300 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 000' $2.15 Sales Price Per Unit Variable Cost Per Unit $1.75 Contribution Margin Per Unit $0.40 Fixed Costs 000'09$ Break-Even (in units) 000'0, Break-Even (in dollars) $322,500 <> B. What will the impact be on net operating income if Flanders purchases the new machinery? $4 Current New Machine Sales $475,150 Variable Costs 386,750 Contribution Margin $88,400 Fixed Costs 000'09 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase?
%24 %24 %%24 %24 %24 %24 X My Home ngageNowv2| Online teachir x 2.cengagenow.com/ilm/takeAssignment/takeAssignmentMar.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false O ) (29) Summer Walker - Thro X eBook 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 $20,300 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 000' $2.15 Sales Price Per Unit Variable Cost Per Unit $1.75 Contribution Margin Per Unit $0.40 Fixed Costs 000'09$ Break-Even (in units) 000'0, Break-Even (in dollars) $322,500 <> B. What will the impact be on net operating income if Flanders purchases the new machinery? $4 Current New Machine Sales $475,150 Variable Costs 386,750 Contribution Margin $88,400 Fixed Costs 000'09 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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X My Home
ngageNowv2| Online teachir x
2.cengagenow.com/ilm/takeAssignment/takeAssignmentMar.ao?invoker=&takeAssignmentSessionLocator=&inprogress=false
O ) (29) Summer Walker - Thro X
eBook
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 $20,300 per
year. The information they will use to consider these changes is shown here.
A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places.
Current
New Machine
Units Sold
000'
$2.15
Sales Price Per Unit
Variable Cost Per Unit
$1.75
Contribution Margin Per Unit
$0.40
Fixed Costs
000'09$
Break-Even (in units)
000'0,
Break-Even (in dollars)
$322,500
<>
B. What will the impact be on net operating income if Flanders purchases the new machinery?
$4
Current
New Machine
Sales
$475,150
Variable Costs
386,750
Contribution Margin
$88,400
Fixed Costs
000'09
Net Income (Loss)
$28,400
C. What would your recommendation be to Flanders regarding this purchase?
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