7. What is the product mix that will maximize operating income. (assume no demand constraint) A. 14,000 units from designer and zero units from moderately priced. B. 560 units from moderately priced and zero units from designer. C. 437.5 units from designer and 280 units from moderately priced. D. 875 units from designer and zero units from moderately priced. 8. What is the product mix that will maximize operating income. (assume Moore company can't sell more than 600 units of designer and must sell at least 100 units of moderately priced) A. 600 units from designer and 100 units from moderately priced. B. 719 units from designer and 100 units from moderately priced. C. 600 units from designer and 176 units from moderately priced. D. None of the above Read the following information about make or buy decision and answer the subsequent 4 multiple choice questions (9&10&11&12): Cool Systems manufactures 30,000 optical switches (g). The switch has the following manufacturing costs per unit: Direct materials $ 5, Direct labor $3, Variable overhead $6, Fixed overhead $7. Another company has offered to sell Cool Systems 30,000 switches for $15 per unit. If Cool Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. 9. Which of the following information is irrelevant to the buy or make decision A. Fixed overhead cost. B. Direct material cost. C. Direct labor cost. D. Variable overhead cost. 10. What is the differential cost related to the buy or make decision of the 30,000 switches. A. $420,000. B. $630,000. C. $30,000. D. Zero. 11. Which is better for cool system, whether to make or to buy 30,000 switches. A. Buy 30,000 switches because this will reduce cost by $30,000. B. Make 30,000 switches because the will reduce cost by $30,000. C. Buy 30,000 switches because this will reduce cost by $420,000. D. Make 30,000 witches because this will reduce cost by $420,000. 12. Assume that If Cool Systems buys the switch from the outside supplier, the manufacturing facilities would be used to manufacture rotary switches (i) which will lead to additional revenue 60,000; additional cost 20,000. Which is better for the company, whether to make or buy 30,000 optical switches. (all other information are the same). A. Buy 30,000 switches because this will reduce cost by $30,000. B. Make 30,000 switches because the will reduce cost by $30,000. C. Buy 30,000 switches because this will reduce cost by $10,000. D. Make 30,000 witches because this will reduce cost by $10,000