The Marx Brewing Company Recently Installed a New Bottling Machine

question 32

Essay

The Marx Brewing Company recently installed a new bottling machine. The machine's initial cost is $2,000, and can be depreciated on a straight line basis to a zero salvage in 5 years. The machine's per year fixed cost is $1,800, and its variable cost is $0.50 per unit. The selling price per unit is $1.50. Marx's tax rate is 34%, and it uses a 16% discount rate. If Marx sells 2500 units what is the accounting profit and contribution margin for Marx Brewing?

---

Definitions:

Mental Events

Internal cognitive occurrences that take place in the mind, such as thoughts, feelings, and perceptions.

Scientific Study

An investigation and systematic exploration based on empirical evidence and the scientific method to acquire or refine knowledge.

Computed Tomography

A radiographic examination that produces a three-dimensional, cross-sectional view of an area of the body; may be performed with or without a contrast medium.

Contrast Medium

A substance used in medical imaging to improve the contrast of structures or fluids within the body, assisting in the diagnosis of medical conditions.