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1) Your company manufacturers and sells specialty USB devices used to simplify wireless printing. The sales price of each device is: $ 60 The unit

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1) Your company manufacturers and sells specialty USB devices used to simplify wireless printing. The sales price of each device is: $ 60 The unit product cost are presented below: Direct Materials 12 Direct Labor 19 Manufacturing Overhead 6 Total 37 A special order has been place for 15,000 devices by another company. The manufacturing overhead is 50% fixed and 50% variable. A) With respect to the original selling price. Is this a relevant number that will impact your decision to agree to do the special order? Why or why not. (A sentence or two should suffice) B) What is the minimum price your company should agree to, to complete the deal? Show your work. 2) Your company makes rolls for deli sandwiches. It produces 30,000 rolls annually in the production of deli sandwhiches. The cost of the rolls are presented below: Direct Materials S 0.22 Per Roll Direct Labor 0.41 Per Roll Variable Overhead 0.16 Per Roll Fixed Overhead 0.19 Per Roll A potential supplier has offered to sell the rolls to you for: $0.80 per roll If the rolls are purchased 30% of the fixed overhead could be avoided. C) What will be the effect on profit if the company accepts the offer? D) Should the company accept the offer? 3) Holstein Dairy gathered this data about the two products that it produces: Product Current Sales Va Estimated Added Processing Cost Sales if further processed Frozen Yogurt S 8,145 S 2,040 $ 9,043 Ice Cream S 12,350 7,216 S 20,708 E) Which, if any, of the products should be processed further

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