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CVP Analysis of Changes in Sales Prices and Costs (LO 7-1, 7-4) Skip to question...

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CVP Analysis of Changes in Sales Prices and Costs (LO 7-1, 7-4) Skip to question [The following information applies to the questions displayed below.] Jupiter Game Company manufactures pocket electronic games. Last year Jupiter sold 25,000 games at $25 each. Total costs amounted to $525,000, of which $150,000 were considered fixed. In an attempt to improve its product, the company is considering replacing a component part that has a cost of $2.50 with a new and better part costing $4.50 per unit in the coming year. A new machine also would be needed to increase plant capacity. The machine would cost $18,000 with a useful life of six years and no salvage value. The company uses

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