4. One disadvantage of Residual Income over ROI is that, unlike ROI, using Residual Income for performance evaluation may discourage investments that are lower than the current location Return on Investment? True or False?

5. You are preparing a proposal for catering an event. This will involves creating a unique menu and unique list of drinks based on the customers requirements. This is an example of what type of activity?

a. Unit b. Batch c. Product d. Customer e. Organizational

Please, answer 1, 2, 3, 4 and 5 clearly with showing the steps.

1. A company is evaluating a special order because the plant is currently operating well under capacity. The current price to current customers is $30.00 per unit and the production costs are $21.00 a unit comprised of $15.00 in variable costs and $6.00 in fixed costs. The company received a special order from a foreign customer to purchase 10,000 units at a special-order price of $20.00 per unit. This order can be completed without increasing the fixed costs of the operation but shipping costs will increase by $3.00. Required: What is the financial impact in dollars of accepting the special order? In addition, in your answer make sure to indicate whether the financial impact would be an increase or decrease in operating income 2. Given: A company needs 1,000 units of an important part. The following information was obtained from the controller about the per unit costs to make the part internally Prime costs $10.00 Variable overhead $8.00 Fixed overhead $4.00 Total mfq. costs $22.00 An outside firm has offered to make the part for $15.00. The production engineering manager tells you that if the product is made on the outside, the company can avoid $3.00 per unit of fixed overhead. Required: What is the financial impact in dollars of buying the part from the outside supplier rather than making it internally? In addition, in your answer make sure to indicate whether the financial impact would be a savings or an increase in cost