6. Farnsworth Television makes and sells portable television sets, Each television regularly sells for $200. The following cost data per television are based on a full capacity of 12,000 televisions produced each period: $75 Direct materials Direct labor. $55 Manufacturing overhead (75 % variable, 25 % unavoidable fixed) $48 A special order has been received by Farnsworth for a sale of 2,500 televisions to an overseas customer. The only selling costs that would be incurred on this order would be $15 per television for shipping. Famsworth is now selling 7,200 televisions through regular distributors each period. What should be the minimum selling price per television in negotiating a price for this special order? (Choose the closest answer). $188 A. $166 C. B. $178 D. $176 $181 E. 7. Yukon Perfume Corporation manufactures three distinct perfumes (I, I1, and IlI) from a single joint process. The three perfumes can be sold to discount stores in the form they are in at the split-off point. However, if the perfumes are further processed, they can be sold to specialty stores. Costs related to each batch of perfume separation is as follows: Perfume I Perfume II $1,200 $1,000 $2,500 $1,400 Perfume III $1,600 $1,000 $2,000 $500 Sales value at split-off point.. Allocated joint costs Sales value after further processing... Cost of further processing $1,500 $1,000 $3,500 $1,600 For which product(s) above would it be more profitable for Yukon to sell after further processing rather than at the split-off point? A. I only B. III only C. I and II only D. II and II only E. I, II, and III CABIC 8. Condensed monthly operating income data for Cosmo Inc. for November is presented below. Additional information regarding Cosmo's operations follows the statement. Sales Variable expenses Contribution margin.. Traceable fixed expenses Store segment margin Common fixed expenses... Net operating income .. Total Mall Store $80,000 32,000 48,000 20.000 Town Store $120,000 84,000 36,000 40,000 $200,000 116.000 84,000 60,000 24,000 10.000 $14,000 28,000 (4,000) 6,000 S10,000) 4.000 $24.000 Cosmo allocates common fixed expenses to each store on the basis of sales dollars. Management estimates that closing the Town Store would result in a 5 % decrease in Mall Store's sales. The operating results for November are representative of all months. A decision by Cosmo Inc. to close the Town Store would result in a monthly increase (decrease) in Cosmo's net operating income of A. $4,000 B. $1,600 C. S(8,400) D. S(4,000) E. $2,600 9. A company produces three products with the following costs and selling prices: Round Square Triangle Product Name Selling Price Per Unit Variable Cost Per Unit. Machine Hours Per Unit $26 $10 $20 $12 $24 $10 4 The company has a limit of 14,600 machine hours available per month. The company has a monthly fixed cost of $30,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the company can rent a machine that will provide an additional 1,000 machine hoursp month. What is the maximum monthly rent the company would be willing to pay for this machine" 2 A. $2,400 B. $4,200 C.$2,000 D. $2,800 E.$1,200
