1.) What is total profit expected to be?

2.) What will be the impact on profit if Kimble drops sofas?

3.) What will be the impact on profit if Kimble drops chairs, but is able to shift the facilities to making more sofas so that volume of sofas increases to 7,000 units? (total fixed costs remain constant).

4.) Variable cost per sofa includes $60 for parts that the company now buys outside. The company could make the parts at a variable cost of $45. It would also have to increase fixed costs by $35,000 annually. What would happen to profit if the company took the proposed action?

5.) Kimble has received a special order for 1,000 tables at $245. Capacity is sufficient to make the units, and sales at the regular price would not be affected. What will happen to profit if Kimble accepts the order? 6.) Repeat question 5 above, assuming now that the order is for 1,500 tables and that capacity is limited to 4,000 tables.

I. Comprehensive review of short-term decisions. The following data relate to the planned operations of Kimble Company before considering the changes described later. All fixed costs are direct, but unavoidable. Chair $120 $ 40 Product Table $400 $160 120 $280 $120 3,000 Selling price Variable costs Fixed costs Total costs Profit per unit Annual volume 30 Sofa $600 $360 180 $540 $ 60 4,000 $70 $50 8,000