21) Skippy's Oysters fishes for oysters in the ocean and processes them for sale to restaurants and seafood producers. The shells are sold to a company that produces fertilizers for $100 a ton. A shell paving company has offered to buy the shells for $175 a ton if Skippy's will power wash them. The power washing could cost $95 a ton. Skippy's should: A) Power wash the shells and get the extra $75 a ton in the selling price B) Continue to sell the shells as is and collect $100a ton with no additional work or costs C) Discontinue selling the shells D) Throw the shells back into the ocean 22) Binn Company makes a part they use in producing their product. The part requires direct labor of $10, material of $5, and $5 of manufacturing overhead, of which $2 is variable. An outside supplier has offered to supply the parts at $18 each. If Binn purchases the parts from the supplier the fixed manufacturing overhead can be eliminated. Binn Company should A) Buy the part from the supplier B) Continue to make the part C) Discontinue the product line D) Go out of business 23) In a make versus buy decision, important non-financial considerations include A) The supplier's ability to deliver the parts when needed B) The quality of the parts the supplier makes C) The supplier's business cards D) Both A and B 24) In incremental analysis the costs used to make the decision are A) The average costs B) The relevant costs C) The sunk costs D) The budgeted costs 25) Which of the following are true? A) Variable costs are often relevant B) Fixed costs may be relevant C) Sunk costs are never relevant D) All of the above