9. Miami Company currently sells 3,000 units of product A for $1.25 each. Variable costs are $0.60, avoidable fixed costs are $750, and unavoidable allocated fixed costs are $1,500. An exporter has offered $0.90 per unit for 800 units of product A.

a. Find the change in income if Miami can accept the order without affecting current sales.

b. The managers believe that if they accept the special order, they will lose some sales at the regular price. Determine the number of units they could lose before the order became unprofitable.

c. The managers believe that they will lose 270 units at the regular price if they accept the order. Calculate the price they must charge for the special order to increase income by $200.

10. Arpeggio Company manufactures 1,000 units of part XYZ annually. The following information has been collected:

Materials $200,000

Direct labor 110,000

Variable overhead 50,000

Fixed overhead 100,000

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Total costs $460,000

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Mobile Company has offered to provide part XYZ for $400 per unit. If Arpeggio accepts the offer another product will be moved into the space vacated, saving $60,000 a year in rent.

a. What would be the dollar impact if Arpeggio accepted the offer?

b. What is the maximum price Arpeggio is willing to pay for the part?

Do not copy from Chegg otherwise I have to report