1. The Jersey Company manufactures slippers and sells them at S13 a pair. Variable manufacturing cost is $5.50 a pair, and a located fixed manufacturing cost is $1.56 a pair. It has enough idle capacity available to accept a one-time-only special order of 30,000 pairs of slippers at $7.05 a pair Jersey wil not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) So, ib) S46.500 increase, (C) $165,000 increase or (d; S211.500 increase? Show your calculations 2. The Springfield Company manufactures Part No. 198 for use in its production line. The manufacturing cost per unit for 10,000 units of Part No. 198 is as folows: (Click to see the manufacturing cost per unit) Read part 2s requirement 1. The Jersey Company manufactures slippers and sells them at S13 a pair. Variable manufacturing cost is $5.50 a pair, and a ocated fixed manufacturing cost is $1.56 a pair. It has enough idle capacity available to accept a one-time-only special order of 30.000 pairs of slippers at $7.05 a pair. Jersey wil not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales: (a) SO, (b) S46.500 increase, c) $165,000 increase ord) $211,500) increase Show your calculations Begin by se ecting the labels to calculate the effect on operating income and then enter in the supporting calculations. Data table * units in special order Effect on operating income Requirement Direct materials S 4 Variable direct manufacturing labor 29 Variable manufacturing overhead 13 15 Fixed manufacturing overhead allocated S 81 Total manufacturing cost per unit The Scat Company has offered to soll 10,000 unils of Parl No 490 lo Springfield for $57 per unit. Springfield will make the cocision to buy the part from Sealifihere is an overall savings of all asl 535,000 for Springfield. If Springfield accools Scal's offer. $5 per unit of the fixed overhead allocated would be eliminated. Furthermore, Springfield has determined that the resesed facilities could be used to save relevant costs in the manufacture of Part No. 575. For Springfield to achieve an overall Savings of $35.000, the amount of relevant Cusis that would have lo be saved by using the releasex facililics in the manufacture of Part No. 575 would be which of the following: (al 543,000. (b) 195,000, (c) 545,000 or id) $100.000? Show your calcula lions. What other factors right Springfield consider before outsourcing to Scal? Help me solve this Etext Print Done ver Print Done