12.13.

12. Lewis Production Company had the following projected information for 2004. Selling price per unit E150 Variable cost per unit E90 Total fixed costs E300,000 What is the profit when one unit more than the break-even point is sold? a. E150 b. E60 C. E1,500, 150 d. E600,060 13. Foster Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: Direct materials E150,000 Direct labour 240,000 Variable manufacturing overhead 90.000 Fixed manufacturing overhead 120,000 Total E600.000 An outside supplier has offered to sell the component for $25.50. What is the effect on income if Foster Industries purchases the component from the outside supplier? a. 130,000 decrease b. f30,000 increase C . 190,000 decrease d. $90,000 increase