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10 Ed out of Peter Company is manufacturing 5,000 part that is used in one of its products. The company's accounts show the following costs

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10 Ed out of Peter Company is manufacturing 5,000 part that is used in one of its products. The company's accounts show the following costs for producing the 5,000 part internally: Per Part Variable manufacturing cost... $27 Traceable fixed manufacturing overhead Allocated fixed manufacturing overhead 5 Total cost... $36 The traceable fixed manufacturing overhead costs consists of 80% depreciation of special equipment and 20% supervisor salaries. The special equipment has no resale value. The supervisory salaries could be avoided if production of the part were discontinued. An outside supplier has offered to sell the 5,000 parts to Peter Company at $30 each. How much would be the increase or decrease in profit, if this offer is accepted? Select one: O a. Increase by $30,000 O b. Decrease in profit by $11,000 O c. Increase in profit by $10,000 O d. Decrease by $30,000 on 7 et ered ed out of 18 tion Assume the following production data for Pol Company: Direct materials $12.00 Direct labor.. 4.50 Variable manufacturing overhead. 0.30 Fixed manufacturing overhead. 5.00 Variable selling expenses.... 1.20 Fixed selling expenses.. 3.50 Total cost per unit. $26.50 The company received 1,000 units special order at a price of $20 per unit. The company has sufficient capacity to produce the order. If order is accepted, the company has to purchase a special equipment to produce the order at a total cost of $9,000. How much is the total cost to produce and sell the special order? D Select one: O a. $27,000 Q th 41 O b. $53,000 O c. $45,000 O d. $46,000 Find MixGram

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