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6. Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65 $50

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6. Forrest Corporation manufactures parts that are used in the production of washers and dryers. The following costs are associated with part no. 65 $50 19 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling costs 15 The company received a special-order inquiry from an appliance manufacturer in Brazil for 15,000 units of part no. 65. Only $3 of fixed manufacturing will be incurred on the order variable selling costs per unit will amount to only $5. Since Forrest has excess capacity, the minimum price that Forrest should charge the Brazil manufacturer is: A. $96 B. $99. C. $105. D. $108. E. None of the answers is correct 7. Canyon Trails is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $30,000 and $25,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Canyon Trails can secure needed H/R services locally for $410,000, how much would the company benefit by outsourcing? A. $10,000. B. $35,000. C. $130,000. D. $155,000. E. Nothing, as it would be cheaper to keep the department open

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