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How do estimate the incremental profit per year associated

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Reference no: EM132714206

Problem 1: Based on the following information estimate the incremental profit per year associated with adding a new inspection station?

  • Management estimates the new station will free up 240 hours in the department ([an average of 5 minutes per hour x 8 hours per day x 360 operational days per year]/60).
  • Management has calculated that the average contribution margin per unit for its products is $300.
  • The average contribution margin per hour spent in the department is $850.

Reference no: EM132714206

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