61. The Pleasantville Company makes 20,000 units per year of a part used in production. The unit product cost is as follows Direct materials Direct labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Unit product cost 6.20 2.30 1.20 10.50 An outside supplier has offered to sell the company the same part at a cost of $9.00 per unit. If the company purchases the part only half of the fixed overhead would be avoided. How much of the unit product cost is relevant in making this decision A. $9.70 B. $10.50 C $2.30 $10.10 3 -Self-test-D 62.Augusta Company manufactures stereo components One of its most popular products is the LoudBoom Speaker. Data concerning this product are given below: Normal Selling Price Direct materials Direct labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Expense Fixed Selling & Administrative Expense $50.00 $12.20 $3.60 $1.80 $2.00 $1.90 $.80 The above per unit data are based on annual production of 3,000 units of the component. The company has received a special, one-time-only order for 200 units of the speaker. There would be no selling expenses on this special order and the total fixed manufacturing overhead and fixed selling and administrative expenses of the company would not be affected by the order. Assuming that Augusta Company has excess capacity and can fill the order without any production disruptions, what is the minimum price per unit on the special order the company should charge? A $50.00 B. $19.60 C. $17.60 D. $22.30 LO3-Self-test-c 63. Shickman Company makes the widgets it uses in one of its products at a cost of $8 per unit. This cost includes $2 of fixed overhead. The company needs 10,000 of these plugs annually, and Orlando Company has offered to sell them at $5 per unit. If Shickman Company purchases the plugs, the company would A. Increase profits by $30,000. B. Decrease profits by $10,000. C. Increase profits by $10,000. D. Decrease profits by $30,000. LO3-Self-test-c