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3- D'Arien Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392.000 D' Arien has received a special order from an
3- D'Arien Company incurred the following costs for 70,000 units: Variable costs $420,000 Fixed costs 392.000 D' Arien has received a special order from an Armenian company for 3,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $6,600 for shipping. If D'Arien wants to break even on the order, what should the unit sales price be? a. $8.20 b. $6.00 c. $11.60 d. $13.80 4- Nelson Manufacturing Company can make 100 units of a necessary component part with the following costs: $120,000 25,000 45,000 20,000 Direct Materials Direct Labor Variable Overhead Fixed Overhead If Nelson Manufacturing Company can purchase the component externally for S190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make-or-buy decision? a. Make and save $5,000 b. Buy and save $5,000 c. Make and save $15,000 d. Buy and save $15,000
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