39. Hannah's Homemade Cookies produces and sells delicious shortbread cookies. The (joint) cost of producing a bag of cookies is $.65 and the bag sells for $3.75. Hannah is considering processing all the cookies further by dipping them in chocolate. The additional processing costs would be $.50 per bag and the sales price of the chocolate-dipped cookies would be $4.20 per bag. If Hannah can sell 5,000 bags of either type of cookie per year, which of the following statements is TRUE if she chooses to process the cookies further?

a.	Net income would increase by $2,250 per year.
b.	Net income would decrease by $2,500 per year.
c.	Net income would decrease by $250 per year.
d.	Net income would increase by $15,250 per year.

Grants Kitchens is approached by Ms. Tammy Wang, a new customer, to fulfill a large one-time-only special order for ONE unit of product similar to ONE unit offered to regular customers. The following per unit data apply for selling ONE unit to regular customers:

Direct materials $455

Direct labor 300

Variable manufacturing overhead 45

Fixed manufacturing overhead 100

Total manufacturing costs 900

Regular selling price $1,440

Grants Kitchens has excess capacity. Ms. Wang wants the cabinet in cherry rather than oak, so direct material costs will increase by $30 per unit.

40. For Grants Kitchens, what is the minimum acceptable price of this one-time-only special order for ONE unit for Grants Kitchens to earn at least $400 on the special order? HINT: Work backwards.

a. $830

b. $1,030

c. $1,230

d. $1,430

41. Gamble Company has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of $50, and Product Y has a contribution margin of $64. Product X requires 5 hours of machine time, and Product Y requires 8 hours of machine time. If Gamble Company can sell up to maximum of 4,000 units of Product X and 4,000 units of Product Y, at the optimum product mix of X & Y, the company will have a total contribution margin of

a.	$250,000.
b.	$240,000.
c.	$210,000.
d.	$200,000.