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A project will increase revenue from $1.9 million to $2.6 million. Wages are 50% of revenue. Maintenance on the machine will be $25,000 less than it is on the machine that will be replaced.
Problem 1: What is the incremental revenue that will result from accepting this project?
(Hint: This is tricky. Read the question carefully to be sure you understand exactly what this question is asking for.)
Select one:
a. $0.325 million
b. $0.375 million
c. $0.700 million
d. $0.350 million
the company must decide whether to keep the old machine or buy the new machine.a identify the costs that will be
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