13 Assume a company purchases honeycombs from beekeepers for $2.00 a pound. The honey can be sold in raw form for $3.20 a pound or it can be used to make honey drop candies. Each package of candies contains three-quarters of a pound of honey and can be sold for $4.40. In addition to the cost of the honey, making and selling each container of candies incurs additional variable costs of $150 per unit The monthly fixed costs associated with making the candles include: Master candy-maker's salary Depreciation of candy-making equipment Salary of salesperson dedicated to this product Total fixed costs $3,880 480 2,800 $6,280 What is the incremental contribution margin earned by the company when it processes raw honey into one container of candies? What is the incremental contribution margi 13 Multiple Choice $0.70 $0.90 O O $0.50 O O $0.10 15 Assume that a company manufactures numerous component parts, one of which is called Part A. The company's absorption costing system indicates that it costs $23.00 to make one unit of Part A as shown below: Direct materials Direct labor Variable overhead Fixed overhead Total absorption cost per unit $10.00 6.00 2.00 5.ee $23.00 The company is trying to decide between two alternatives Alternative 1: Continue making 50,000 units of Part A annually using its existing equipment at the unit cost shown above. The equipment used to make this part does not wear out through use and it has no resale value Alternative 2. Purchase 50,000 units of Part A from a supplier at a cost of $19.00 per unit What is the financial advantage or (disadvantage) of buying the ports from a supplier? Alternative 2: Purchase 50,000 units of Part A fr What is the financial advantage or (disadvantag 15 Multiple Choice $(200,000) O O $50,000 O $(50,000) O $200,000