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CoursHeroTranscribedText: Denver Cabinets Company (DCC) produces and sells specialty wooden cabinets. Production is macmntlntensme. DCC's...

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CoursHeroTranscribedText: Denver Cabinets Company (DCC) produces and sells specialty wooden cabinets. Production is macmntlntensme. DCC's variable costs are direct materials, variable machining costs and sales commissions. Robert Denver, the owner, is planning production for 2011. Salespeople are paid a 6% commission on each Colonial or Modern models sold and an 8% commission on each Distressed model sold. Fixed costs (administrative/selling and production) total $8,750,000. Annual capacity is 50,000 machine hours which is limited by the availability of machines. Variable machining costs are $200 per hour. (J TVpe of 9 Annual Selling Price per Direct material Variable Wooden J unit 63 cost per unit 0 Machining cost Cabinet

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