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1 Alpha Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level
1 Alpha Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is as follows: 701 Direct materials $10.00 Direct labour 3.00 2.00 Variable manufacturing overhead 2.00 Fixed manufacturing overhead 4.00 Variable selling and administrative expenses Fixed selling and administrative expenses 3.00 The normal selling price is $ 30 per unit. The company's capacity is 75,000 units per year. An order has been received from a mail-order house for 10,000 units at $25 per unit. If Delta accepts the special order by how much will profits increase? Select one: $10,000 $80,000 $250,000 none of these vious page Next page Rock Air Epsilon Company is trying to decide whether or not to close Division A. The total contribution margin for Division Ais $450,000 and the total fixed costs are $600,000, of which $200,000 are allocated and would have to be absorbed by other divisions in the company. What is the effect on total net income for Epsilon if Division A is closed? Select one: $150,000 decrease none of these $50,000 decrease $150,000 increase age Next pag Epsilon Company's is projecting a net loss of $100,000. To reduce this loss it is is trying to decide whether or not to close Division A. The total contribution margin for Division A is $450,000 and the total fixed costs are $600,000, of which $200,000 are allocated and would have to be absorbed by other divisions in the company if Division A is closed. if Division A is closed what will be the revised income projection for Epsilon Company? Select one: $150,000 net loss none of these $250,000 profit $150,000 net profit Next page
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