Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model number 6754: Variable costs, $16.00 per unit Annual fixed costs, $986,300 Model number 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,300 Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent sales commission. (In the following requirements, ignore income taxes.) 2-a. Calculate the net income of the two systems if sales and production are expected to average 63,400 units per year. Model Number 6754 Model Number 4399 Net Income
Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model number 6754: Variable costs, $16.00 per unit Annual fixed costs, $986,300 Model number 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,300 Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent sales commission. (In the following requirements, ignore income taxes.) 2-a. Calculate the net income of the two systems if sales and production are expected to average 63,400 units per year. Model Number 6754 Model Number 4399 Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for
producing its sole product, the universal gismo. Data relevant to the systems follow.
Model number 6754:
Variable costs, $16.00 per unit
Annual fixed costs, $986,300
Model number 4399:
Variable costs, $11.80 per unit
Annual fixed costs, $1,114,300
Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent
sales commission. (In the following requirements, ignore income taxes.)
2-a. Calculate the net income of the two systems if sales and production are expected to average 63,400 units per
year.
Model Number 6754
Model Number 4399
Net Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3a9896b-f6b7-43b2-8fc9-8ed4f1c329f9%2Fa87e776d-69e5-4880-864c-2ee1fba44c6a%2Fvet5j2c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for
producing its sole product, the universal gismo. Data relevant to the systems follow.
Model number 6754:
Variable costs, $16.00 per unit
Annual fixed costs, $986,300
Model number 4399:
Variable costs, $11.80 per unit
Annual fixed costs, $1,114,300
Corrigan's selling price is $66 per unit for the universal gismo, which is subject to a 15 percent
sales commission. (In the following requirements, ignore income taxes.)
2-a. Calculate the net income of the two systems if sales and production are expected to average 63,400 units per
year.
Model Number 6754
Model Number 4399
Net Income
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