25 Ovation Company has a single product called a Bt. The company normally produces and sells 67,200 Bits each yen ata selling price of $48 per unit. The company's unit costs at this level of activity are given below. Direct te TR Variable manufacturing overhand danetwing verhaal Variable selling expenses 0.10.20 7.00 3.90 2.70.440 total) 6.90 3.30 $221,260 total) Totat per unit 934.00 A number of questions relating to the production and sale of Bits follow. Each question is independent Required 1. Assume that Ovation Company has sufficient capacity to produce 100,800 Bits each year without any increase in fixed willing to increase the fixed selling expenses by $108,000. manufacturing overhead costs. The company could increase its sales by 25% above the current 67,200 units each year if it were a. Calculate the incremental net operating income. rente per income . Would the increased fixed selling expenses be justified? Yes O No Lume that Ovetion Company has sent capacity to produce 100,800 och year without any increase in theed manufacture overhead costs. The company could increases sales by 25% bove the current 67,200 units och yw Wit Wer willing to increase the three selling expenses by S8,000 Calculate the incremental net operating income Would the increased fixed selling expenses be justified? Yes No 2. Assume again that Ovation Company has sufficient capacity to produce 100,800 Bits each year. A customer in a foreign market wants to purchase 16,800 Bits. Import duties on the Bits would be $1.70 per unit, and costs for permits and licences would be $7,560 Both Import duties and permits and licenses will be paid by Ovation. The only selling costs that would be associated with the order are $3.30 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round your Intermediate calculations. Round your answer to 2 decimal places.) 3. The company has 1,000 Bits on hand that have some irregularities and are therefore considered to be "seconds. Due to the Irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What unit cost figure is MacBook Air 2. The company has LOOO son hand that have some regulates and are therefore considered to be seconds Due to the Irregularities will be impossible to sell these units at the normal price through regular distribution channels. What et contre relevant for setting a minimum selling price? Mund you to 2 decimal places) 4. Due to a strike in its supplier's plant, Ovation Company is unable to purchase more material for the production of Bits. The strike is expected to last for two months. Ovation Company has enough material on hand to operate at 30% of normal levels for the two-month period. As an alternative, Ovation could close its plant down entirely for the two months. If the plant were closed, flued manufacturing overhead costs would continue at 60% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% What would be the impact on profits of closing the plant for the two-month period? (Input the amount as a positive value. Do not round your intermediate calculations.) Net of closing the plant 25 Ovation Company has a single product called a Bt. The company normally produces and sells 67,200 Bits each yen ata selling price of $48 per unit. The company's unit costs at this level of activity are given below. Direct te TR Variable manufacturing overhand danetwing verhaal Variable selling expenses 0.10.20 7.00 3.90 2.70.440 total) 6.90 3.30 $221,260 total) Totat per unit 934.00 A number of questions relating to the production and sale of Bits follow. Each question is independent Required 1. Assume that Ovation Company has sufficient capacity to produce 100,800 Bits each year without any increase in fixed willing to increase the fixed selling expenses by $108,000. manufacturing overhead costs. The company could increase its sales by 25% above the current 67,200 units each year if it were a. Calculate the incremental net operating income. rente per income . Would the increased fixed selling expenses be justified? Yes O No Lume that Ovetion Company has sent capacity to produce 100,800 och year without any increase in theed manufacture overhead costs. The company could increases sales by 25% bove the current 67,200 units och yw Wit Wer willing to increase the three selling expenses by S8,000 Calculate the incremental net operating income Would the increased fixed selling expenses be justified? Yes No 2. Assume again that Ovation Company has sufficient capacity to produce 100,800 Bits each year. A customer in a foreign market wants to purchase 16,800 Bits. Import duties on the Bits would be $1.70 per unit, and costs for permits and licences would be $7,560 Both Import duties and permits and licenses will be paid by Ovation. The only selling costs that would be associated with the order are $3.30 per unit shipping cost. Compute the per unit break-even price on this order. (Do not round your Intermediate calculations. Round your answer to 2 decimal places.) 3. The company has 1,000 Bits on hand that have some irregularities and are therefore considered to be "seconds. Due to the Irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What unit cost figure is MacBook Air 2. The company has LOOO son hand that have some regulates and are therefore considered to be seconds Due to the Irregularities will be impossible to sell these units at the normal price through regular distribution channels. What et contre relevant for setting a minimum selling price? Mund you to 2 decimal places) 4. Due to a strike in its supplier's plant, Ovation Company is unable to purchase more material for the production of Bits. The strike is expected to last for two months. Ovation Company has enough material on hand to operate at 30% of normal levels for the two-month period. As an alternative, Ovation could close its plant down entirely for the two months. If the plant were closed, flued manufacturing overhead costs would continue at 60% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% What would be the impact on profits of closing the plant for the two-month period? (Input the amount as a positive value. Do not round your intermediate calculations.) Net of closing the plant