Question
5. Q6: Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of $75. Fixed manufacturing costs
5. Q6: Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of $75. Fixed manufacturing costs were $80,000 when 10,000 units were produced and sold, equating to $8 per unit. The company has a one-time opportunity to sell an additional 1,500 units at $55 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order? (2 Marks) A) $19,500 B) $63,000 C) $50,000 D) $7,500 Q7: Bonny Corporation has two divisions: The Delta Division and the Alpha Division. The Delta Division has sales of $620,000, variable expenses of $359,600, and traceable fixed expenses of $229,200. The Alpha Division has sales of $820,000, variable expenses of $541,200, and traceable fixed expenses of $172,900. The total amount of common fixed expenses not traceable to the individual divisions is $122,000. What is the company's overall net income? (2 Marks) A) $539,200 B) $15,100 C) $137,100 D) $417,200 5 Q8: Hen Company has developed a new product, egg crates that prevent breakage. The cost per crate is $75 B and the company expects to sell 1,000 crates per year. Hen Company has invested $1,800,000 in e equipment to produce the crates and desires a 8% return on investment. What is Hen Company's desired O markup percentage (Total Cost Approach)? 1 2 3 4 = 4 A) 8% B) 24% C) 80% D) 192%
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