Use the Information Below to Answer the Following Questions -Refer to the Table Above

question 12

Multiple Choice

Use the information below to answer the following questions.
Unique Tables manufacture coffee tables made of recycled timber. Market research has suggested that there will be strong demand for the tables. Due to this, management is debating whether to lease a new turning machine to meet increased production. To assist in their decisionmaking, the management accountant has supplied the following information: $\begin{array}{lll}&\text { Without }&\text {With }\\&\text { turning machine }&\text { turning machine }\\\hline\text { Expected level of sales } & 1,500 \text { units } & 1,500 \text { units } \\\text { Sales price per unit } & \$ 150 & \$ 150 \\\text { Variable costs per unit } & \$ 120 & \$ 110 \\\text { Fixed costs } & \$ 7500 & \$ 15,000\end{array}$
-Refer to the table above. At the current level of sales, which of the following results are achieved?

• A)Without the turning machine profit of $45,000. With the turning machine profit of $52,500.
• B)Without the turning machine profit of $30,000. With the turning machine profit of $22,500.
• C)Without the turning machine profit of $37,500. With the turning machine profit of $45,000.
• D)None of the above.

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Definitions:

Long-Term Leases

Lease agreements that extend for a substantial period of time, often more than one year, used frequently in real estate and equipment leasing.

Residential Property

Real estate designated for occupation by households or for non-commercial purposes.

Extensions

Additions or expansions to a pre-existing document, contract, or period of time.

Local Housing Codes

Rules and regulations established by municipal governments aimed at ensuring safe and habitable housing conditions.