29 Aitken Corp currenty makes 20,000 subcomponents a year in one of its factories. The un costs to produce are: a year in one of its factories. The unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Per unit $15 10 15 10 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. $400,000 increase c. $200,000 increase d. $100,000 decrease 30. A company has already incurred a $12,000 cost in partially producing its two products. Their selling prices when partially and full y processed are shown in the table below with the additional costs necessary to finish their processing. Based on this information, should any products be processed further? Unfinished Fini Further Product Selling Prioe Selling Price Processing Costs $65 $89 S775 $700 $800 $888 Both product A and product B should be processed further. a. b. Neither product A nor product B should be processed further. c. Only product B should be processed further. d. Only product A should be processed further. 31. Which of the following statements regarding capital investment analysis is false? a. A long-term planning horizon is assumed. b. Benefits of potential investment projects are conceptually expressed in terms of accounting income Project acceptance decisions are based on models that explicitly incorporate the time value of money 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. c. d