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Question 1: QualSupport Corporation plans to prepare financial analysis that will be used in deciding whether or not to close the Denver Cover Plant. Management has asked you to identify:Looking at the data you have prepared in requirement, should the plant be closed? Show computations and explain your answer.
a. The annual budgeted costs that are relevant to the decision regarding closing the plant (show the dollar amounts).
b. The annual budgeted costs that are not relevant to the decision regarding closing the plant and explain why they are not relevant (again show the dollar amounts).
c. Any nonrecurring costs that would arise due to the closing of the plant, and explain how they would affect the decision (again show any dollar amounts).
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