Question: Please out correct answer in the underlined space provided. ABC Company is considering chanaina its cost structure by investing in automation which means acquiring computer-controlled

 Please out correct answer in the underlined space provided. ABC Company

Please out correct answer in the underlined space provided. ABC Company is considering chanaina its cost structure by investing in automation which means acquiring computer-controlled robots and reducing the labor force. Data for the currentenvironmentand the new automated environmentare as follows: Current New Unitvariable cost Material $ 1.00 $ 1.00 Labor 140 0.20 Total per unit 240 $ 1.20 Monthly fixed costs Rentand amortization $ 460.000.00 910.000.00 Supervisory labor 100.000.00 120.000.00 Other 50 000 00 80 000 00 Total per month $ 610.000.00 $ 1110.000.00 Expected volume 600.000 units Capacity volume 900.000 units Sale price per unit $ 4.50 Required: Compute the budgeted profitat the expected volume under (5 Marks ) both currentand new environments. Current Environment New Environment b) Compute the budgeted profitfor both currentand new (2 Marks ) environments ifvolume ofsales falls to: 300.000 units Current Environment New Environment c) Compute the budgeted profit for both currentand new (2 Marks ) environments ifvolume ofsales increases 1 900.000 units New Environment Current Environment

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