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Regency Records Makes Vintage Vinyl Record Albums

Question 139

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Regency Records makes vintage vinyl record albums. It has the following sales and cost data per unit at current production of 100,000 units: Regency Records makes vintage vinyl record albums. It has the following sales and cost data per unit at current production of 100,000 units:   If Regency were able to increase production by 20% without having to add extra capacity,  a) What amount of total variable and fixed costs will the company recognize?  b) What amount of net income will the company recognize? If Regency were able to increase production by 20% without having to add extra capacity,
a) What amount of total variable and fixed costs will the company recognize?
b) What amount of net income will the company recognize?

Correct Answer:

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(a) Variable Costs = $1,620,000 , Fixed ...

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