1. If West Star received a special order for 500 computers at a price of $275, what will be the impact on the company's profit if the order is accepted? (Assume that other variables do not change).

1. Direct materials$48
2. Direct labor$90
3. Variable manufacturing overhead$62
4. Direct fixed manufacturing overhead$40
5. Indirect fixed manufacturing overhead$40

2. Newell Company presently has three product lines: paper, stamps, and computer ribbons The company is considering discontinuing the stamp line. Given the following information, if Newel discontinues the stamp line, what would the net income be?

1. Sales revenue$48,000
2. Variable costs($30,000)
3. Direct fixed costs($12,000)
4. Indirect fixed costs($9,000) 
5. Net Loss($3,000)