29 Aitken Corp currently makes 20,000 subcomponents a year in one of its factories. The unit costs to produce are Per unit $15 10 15 10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead An outside supplier has offered to provide Aitken Corp with the 20,000 subcomponents at a 45 per unit price. If Aitken Corp accepts the outside offer, the total amount of fixed manufacturing overhead would not be affected. What will be the effect on Aitken's profits if Aitken Corp accepts the outside offer? a. $200,000 decrease b. $100,000 decrease e. $400,000 increase d. $200,000 increase 30. A company has already incurred a $12,000 cost in partially producing its two products. Their ces when partially and fully processed are shown in the table below with the costs necessary to finish their procesing. Based on this information, should any products be processed further? Unfinished Further Finished Selling Price Selling Price Prooessing $775 $888 Costs $65 $89 $700 $800 Both product A and product B should be processed further. a. b. Only product A should be processed further. c. Only product B should be processed further. d. Neither product A nor product B should be processed further 31. Which of the following statements regarding capital investment analysis is false? A long-term planning horizon is assumed. b. a. Project acceptance decisions are based on models that explicitly incorporate the time value of money c. Cost of capital is another term for "required rate of return," and is used to calculate the present value of anticipated cash flows for a project. d. Benefits of potential investment projects are conceptually expressed in terms of accounting income. 32. A positive net present value indicates that a project will a. generate a return in excess of alternative projects b. generate a return in excess of the firm's cost of capital. c. generate more cash than alternative projects. d. None of these answers is correct