1. Button Company manufactures and sells dresses at a variable cost of $34 each and a fixed cost of x. It can sell 6,20 dresses at a selling price of $70 to earn an operating income of $93,200 (Option 1) or it can sell 3,700 dresses at a selling price of $80 and another 1,200 dresses at a selling price of $66 (Option 2). Which alternative should Button choose? Option 1 operating income: Option 2 operating income: Button should choose Question 1 1. Button Company manufactures and sells dresses at a variable cost of $34 each and a fixed cost of x. It can sell 6,200 dresses at a selling price of $70 to earn an operating income of $93,200 or it can sell 3,700 dresses at a selling price of $80 and another 1,200 dresses at a selling price of $66. Which alternative should Button choose? Print Done - Question 2 2. Crew Corporation manufactures and sells a special kind of ball bearing. Its cost structure depends on the number of bearings it produces. Its fixed costs and variable manufacturing cost per unit for different ranges of production are described in the following table: Variable Manufacturing Production Range in Units Fixed Costs Cost per Unit 1-3,000 units produced $ 300,000 $ 67 3,001-6,000 units produced $ 430,000 $ 57 6,001-10,000 units produced $ 830,000 $ 42 Crew's sales director believes the company can sell 2,100 units at a selling price of $390; or 3,600 units at a price of $240; or 7,100 units at a price of $190. If it chose to sell 7,100 units, however, it would incur additional advertising costs of $70,000 and variable selling costs of $3 per unit. Should Crew Corporation plan to produce and sell (a) 2,100 units (b) 3,600 units or (c) 7,100 units?