26 Maple Leaf Designs has capacity to produce 30,000 porch swings per year and is currently selling all 30,000 for $180 each. Friendship Star Enterprises has approached Maple Leaf to buy 800 porch swing's for $160 each. Maple Leaf's normal variable cost is $125 per sing, induding $40 per unit in direct labor per swing. Maple Leaf can produce the special order on an overtime shit, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fod costs would be unaffected by the special order and the contract would not disrupt any of Maple Leaf's other operations. Should Maple Leaf accept the special order? 1 POINT Grading Feedback What will be the impact on profits of accepting the order?' Indicate a dollar amount, and also be sure to identify whather that amount represents an increase or decrease to profits. 4 POINTS Your nexporret todd rows for calculations as preded) Grading Feedbook 27 Broken Dish Diner currently makes cookies for its boxed lunches. It uses 30,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are Materials $0.20 per cookie Labor $0.10 per cookie Variable overhead $0.20 per cookie Fland overhead $0.10 per cookie A potential supplier has offered to sell Broken Dish Diner the cookies for $0 55 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Broken Dish Diner accepts the offer, what will be the effect on proli? Indude a dollar amount as well as an identification of whether it represents an increase or decrease. 4 POINTS Your nexporret: fodd rows for calculations as needed) Grading Feedback: 28 Cathedral Window Textiles, Inc. is trying to decide whether or not to continue its linen segment. The information shown is available for Cathedral Window Textiles' business segments. Assume that the direct ford costs may be eliminated but the allocated common fixed costs will need to be reallocated to the remaining two segments. Linein Poplin Mudin Sales 120 000 $ 112 000 $ 215,000 Variable costs (62 000) 62,000 (125,000) Contribution margin 58,000 60.000 90,000 Direct fixed costs (50,000) (22,000) (28,000) Allocated common ford costs (10.000) (27,000) (32,000) Profits (2,000) $ 11,000 $ 10 000 If the Linen product line is dropped, what will be the change in total profit? Indude a dollar amount as well as an Identification of whether it represents an increase or decrease. 4 POINTS Your response: fodd rows for calculations as needed) Grading Feedback: What are three qualitative factors management might consider In making this decision? Elaborate upon each. 6 POINTS Grading Feedback: 29 Courthouse Steps Food Mart has 3,000 pounds of raw pork nearing its expiration date. Each pound has a cost of $6.50. The pork could be sold "as is" for $3.50 per pound to the dog food processing plant, or it could be made into custom Italian sausage and sold in the meat department. The cost of the sausage making is $4.00 per pound and each pound could be sold for $8 30. From a quantitative standpoint (with a goal of maximizing profits), should Courthouse Steps Food Mart sell the pork as is or process it further? What is the additional revenue per pound generated by the option you have chosen? 3 POINTS