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Business, 17.03.2020 04:40 0IggyMarie0

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 no. 6754: Variable costs, $19.00 per unit Annual fixed costs, $986,200 Model no. 4399: Variable costs, $11.80 per unit Annual fixed costs, $1,114,500 Corrigan’s selling price is $67 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 47,000 units per year.

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