2019 Fall Final 10 Topeka Company has a single product called Topek. The company normally produces and sells 80,000 Topeks each year. The company's unit costs at this level of activity are given below: Variable manufacturing cost Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit. $23.30 5.00 1.70 4.50 34.50 One of the materials used in the production of Topeks is obtained from a foreign supplier. Civil unrest in the supplier's country has caused a cutoff in material shinments that is expected to last for one yeur oyeti Company has enough material on hand to operate at 50% of normal levels for one year. As an alternative, the Company could close the plant down entirely for one var Closing the plant would reduce fixed manufacturing overhead costs by 30% and the fixed selling expenses would continue at two-thirds of their normal level during the one-year period. What is the selling price per unit of Tonek that wwould make the company indifferent between (i) closing the plant and (ii) not closing the plant for one year? $25.00 $29.30 A. B. $31.00 C. $47.50 E. None of the above D. 11 All differences between super-variable costing and absorption costing are explained by: A. the accounting for direct materials and manufacturing overhead costs. B. the accounting for direct labor and direct materials. C. the accounting for manufacturing overhead costs. D. the accounting for direct labor and manufacturing overhead costs. E. None of the above Page 7 of 17 2019 Fall Final 10 Topeka Company has a single product called Topek. The company normally produces and sells 80,000 Topeks each year. The company's unit costs at this level of activity are given below: Variable manufacturing cost Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit. $23.30 5.00 1.70 4.50 34.50 One of the materials used in the production of Topeks is obtained from a foreign supplier. Civil unrest in the supplier's country has caused a cutoff in material shinments that is expected to last for one yeur oyeti Company has enough material on hand to operate at 50% of normal levels for one year. As an alternative, the Company could close the plant down entirely for one var Closing the plant would reduce fixed manufacturing overhead costs by 30% and the fixed selling expenses would continue at two-thirds of their normal level during the one-year period. What is the selling price per unit of Tonek that wwould make the company indifferent between (i) closing the plant and (ii) not closing the plant for one year? $25.00 $29.30 A. B. $31.00 C. $47.50 E. None of the above D. 11 All differences between super-variable costing and absorption costing are explained by: A. the accounting for direct materials and manufacturing overhead costs. B. the accounting for direct labor and direct materials. C. the accounting for manufacturing overhead costs. D. the accounting for direct labor and manufacturing overhead costs. E. None of the above Page 7 of 17