The Engine Guys produces specialized engines for "snow climber" buses. The company's normal monthly production...
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The Engine Guys produces specialized engines for "snow climber" buses. The company's normal monthly production volume is engines, whereas its monthly production capacity is engines. The current selling price per engine is $ The cost per unit of manufacturing and marketing the engines at the normal volume is as follows:HelpCosts per Unit for EnginesManufacturing Direct materials$Direct labourVariable overheadFixed overheadSubtotalMarketing Variable$FixedSubtotalTotal unitRequired:Answer the following independent questionsa The Provincial Bus Company wishes to purchase engines in October. The bus company is willing to pay a foed fee of $ and reimburse The Engine Guys for all manufacturing costs incurred to manufacture motors. October is a busy month for The Engine Guys, and there are sufficient orders to operate at capacity utilization. There will be on this government contract. Compute the incremental benefit of the contract will be no variable marketing costscremental benefit of the contract
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