5:10 Classroom . docs.google.com 23. Boom Company has received 6 points a request for a special order of 18,000 units of product B99 for $41 each. The product B99's unit product cost is $34, as shown in the below table. Direct labor is a variable cost. The special order will have no effect on the company's total fixed manufacturing overhead costs. The customer wants some modifications to be made to the product B99, which will increase the variable costs by $24 per unit and will also require an investment of $40,000 in special molds that will have no salvage value. This special order will have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, what is the effect on the company's overall net operating income? Amount Direct Materials Direct Labor Variable Manufacturing Overhead Food Manufacturing Overhead Unit Product Cost 5 per 5:10 Classroom docs.google.com operating income? * Item: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit Product Cost Amount $8 per unit 7 per unit 5 per unit 14 per un $34 per unit The overall net operating income will decrease by $54,000. The overall net operating income will decrease by $94,000. The overall net operating income will decrease by $346,000. The overall net operating income will increase $126,000. None of the above. . 6 points 5:10 Classroom docs.google.com 24. The part 570 is used in one of Dory Company's products. The company makes 3,000 units of this part each year. The costs of producing the part at this level of activity are shown in the below table, as reported by the company's accounting department. An outside supplier has offered to produce this part and sell it to the company for $32.10 each. If this offer is accepted, the supervisor's salary and all the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no resale value or other use. The allocated general overhead represents the fixed costs of the entire company. If the outside supplier's offer is accepted, only $3,000 of these allocated general overhead costs will be avoided. If the management decides to buy the part 570 from the outside supplier rather than to continue making the part, what will be the annual impact on the company's overall ( ... 5:10 Classroom docs.google.com pail, VIIAL VIII DE LHE anual impact on the company's overall net operating income?* Item: Direct Materials Direct Labor Variable Manufacturing Overhead Supervisor's Salary Depreciation of Special Equipment Allocated General Overhead Amount $7.70 per unit $6 per unit $8 per unit $7.60 per unit $5.90 per unit $3.30 per unit The overall net operating income will decrease by $5,400 per year. The overall net operating income will decrease by $16,200 per year. The overall net operating income will decrease by $19,200 per year. The overall net operating income will decrease by $22,200 per year. None of the above. . 6 points 5:10 Classroom docs.google.com 25. Superior Corporation currently has two divisions: Aluminum Division and Wood Division. Given below are the operating results for last year. Since the Wood Division has sustained a loss, the president of Superior Corporation is considering the elimination of this division. All the fixed expenses for the division can be eliminated if the division is dropped. If the Wood Division is dropped, how much higher or lower will Superior Corporation's total net operating income be for the year?* Aluminum Division 0.000 Se Variable Expenses Contribution Marin Fed Expenses for the Division Segment Margin Alocated Corporate Feed Expenses Net Operating income Wood Division $300.000 220 100.000 000 40 000 $110.000 It will be higher by $10,000. It will be lower by $40,000 It will be higher by $50,000 It will be lower by $100,000 None of the above