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    Cost Calculations

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    The maker of UCarts is purchasing a new stamping machine. Two options are being considered, Rooney and Blair. The sales forecast for UCarts is 8,000 units for next year. If purchased, the Rooney will increase plant fixed costs by $20,000 and reduce variable costs by $5.60 per unit. The Blair would increase fixed costs by $5,000 and reduce variable costs by $4.00 per unit. If variable costs are now $20 per unit, which machine should be purchased.

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    https://brainmass.com/economics/output-and-costs/cost-calculations-ucarts-stamping-machine-414438

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    Rooney Blair

    Current variable cost 20 20

    Reduction of ...

    Solution Summary

    Cost calculations for UCarts purchasing new stamping machines.

    $2.19