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Accounting Assignment | Custom Assignment Help

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October 19th, 2019

(c) The company is considering of certain production processes. Productive capacity will not be increased, but the contribution margin ratio will increase by 5% of sales via a reduction in direct labor. The automated equipment will cost $5,000,000 per year to operate. Should the equipment be purchased?Custom Assignment Help

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(d) The company is considering increasing the sales price per unit by 10%. The fixed costs and variable per unit cost will not be affected, but (in units) will be reduced by 10%. Decide whether the company will be more or less profitable if they engage this pricing strategy.Get accounting  assignment homework help today

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