You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount time. Thus, you forecast that total sales will increase next year by 18% over the current amount of 96,000 units. If your sales price is $21 per unit, what are the incremental revenues next year from the upgrade? The incremental revenues are $ (Round to the nearest dollar) ETTE

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of
time. Thus, you forecast that total sales will increase next year by 18% over the current amount of 96,000 units. If your sales price is $21 per unit, what are the
incremental revenues next year from the upgrade?
The incremental revenues are $ (Round to the nearest dollar.)
Transcribed Image Text:You are upgrading to better production equipment for your firm's only product. The new equipment will allow you to make more of your product in the same amount of time. Thus, you forecast that total sales will increase next year by 18% over the current amount of 96,000 units. If your sales price is $21 per unit, what are the incremental revenues next year from the upgrade? The incremental revenues are $ (Round to the nearest dollar.)
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