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A company manufactures wooden swing sets which are sold partially assembled. The following costs were incurred related to the production of 1,400 swings:
Boards (180 feet per swing) $504,000
Nuts, bolts and washers 2,500
Wood stain 1,500
Chain for swings (40 feet per set) 56,000
Plastic swing seats (two per set) 5,600
What is the total amount which should be included in manufacturing overhead for the month?
a. $569,600 b. $65,600 c. $9,600
d. $4,000
If the East territory is discontinued, one sales manager (whose salary is $40,000 per year and is part of the fixed costs) will be relocated to the West territory. By how much would Green's income change if the East territory is eliminated? Recast..
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