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Question: relevant cost terms matching soundbite produces three different versions of...

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Relevant Cost Terms: Matching SoundBite produces three different versions of portable digital music players, the Deluxe, Sport and Zip. SoundBite is evaluating a proposal that will result in doubling the production of Sport and discontinuing the production of Zip. The facilities currently used to produce Zip will be devoted to the production of Sport. Futhermore, additional machinery will be acquired to produce Sport. The production of Deluxe will not be affected. All products have a positive contribution margin. Required Presented below are a number of phrases related to the proposal followed by a list of cost terms. For each phrase, select the most approriate cost term. Each term is used only once. Phrases Cost Term (1.) Cost of equipment to produce Zip Answer (2.) Increased variable costs of Sport Answer (3.) Property taxes on the new machinery Answer (4.) Revenues from the sales of Deluxe Answer (5.) Increased revenue from the sale of Sport Answer (6.) Contribution margin of Zip Answer (7.) Variable costs of Deluxe Answer (8.) Company president's salary Answer

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