4 Cobe Company has already manufactured 16,000 units of Product A at a cost of $25 per unit. The 16,000 units can be sold at this stage for $480,000. Alternatively, the units can be further processed at a $260,000 total additional cost and be converted into 5,600 units of Product B and 11,500 units of Product C. Per unit selling price for Product B is $104 and for Product C is $52. 3 points 1. Prepare an analysis that shows whether the 16,000 units of Product A should be processed further or not. Sell as is Process Further eBook Sales Relevant costs: Costs to process further Hint Total relevant costs Income (loss) Print Incremental net income (or loss) if processed further References The company should process further Saves Exit Submit MC Qu. 76 Paxton Company can produce a component of... 1 Paxton Company can produce a component of its product that incurs the following costs per unit direct materials, $10.10; direct labor $14.10, variable overhead $3.10 and fixed overhead, $8.10. An outside supplier has offered to sell the product to Paxton for $35.40. Compute the net incremental cost or savings of buying the component. 1 points Multiple Choice eBook References $8.10 cost per unit. $0 cost or savings per unit. $8.10 savings per unit. $3.10 savings per unit $3.10 cost per unit MC Qu. 74 Markson Company had the following results... 2 Markson Company had the following results of operations for the past year: 1 points Sales (8,000 units at $20.50) Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Operating income $ 164,000 $88,000 15,500 14,000 20,500 (138, 800) $ 26,000 eBook References A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $14.75 per unit In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,650 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will: Multiple Choice Decrease by $5.000 Increase by $4,000 Decrease by $5,650. Decrease by $1,650 Increase by $2,350 MC Qu. 49 Epsilon Co. can produce a unit of product... 3 Epsilon Co. can produce a unit of product for the following costs: 1 points Direct material Direct labor Overhead Total costs per unit $ 7.10 23.10 35.50 $65.70 BOO References An outside supplier offers to provide Epsilon with all the units it needs at $59.05 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to: Multiple Choice Make since the relevant cost to make it is $40.85 Buy since the relevant cost to make it is $40.85 Make since the relevant cost to make $55.05. Buy since the relevant cost to make it is $65.70. Buy since the relevant cost to make it is $55.05