A clothing manufacturer makes both shirts and shorts. The sales price for shirts is $24 with variable costs of $10 and shorts have a price of $32 and variable costs of $17. Which of the following is a true statement for this clothing manufacturer in the short term? 1) They would prefer to make shorts instead of shirts. 2) They would prefer to make skirts instead of shorts. 3) They would not have a preference for either product. 4) If both products used the same machine for different lengths of time, it would make no difference. When making a decision to discontinue a business segment, the following is not an important consideration? 1) Determining the avoidable versus the unavoidable fixed costs of the segment 2) Comparing the contribution margin of the segment with avoidable fixed costs 3) Looking at common fixed costs will lead to mistakes in discontinuation decisions 4) All of the above are important considerations. Bartlett Company manufactures and sells a product for $48 each. The variable costs for this item are $27 per unit. Fixed costs average $9 per unit. A new customer from a country Bartlett has not sold to before calls with a special order. They would like to order 5,000 units at a price of $35 and the customer will pay any additional shipping needed to get the order. How should Bartlett respond? 1) If Bartlett is operating at full capacity, they should accept the special order. 2) If Bartlett has excess capacity, they should not accept the special order. 3) If Bartlett has excess capacity, they would be willing to accept the special order at a price as low as $18. 4) If Bartlett has excess capacity, they would be willing to accept the special order as long as it will not affect business with other customers. When comparing Cost Plus Pricing and Target Costing, which of the following is true? 1) Cost plus pricing is appropriate for companies that have some control over the sales price of their product. 2) Target costing is most appropriate for companies who can control the sales price of their product. 3) The target cost is the total fixed and variable cost after subtracting the profit. 4) The price in cost plus pricing is determined by comparing our price with other companies for similar products. For a cost to be relevant to decision making for managers, it must both pertain to the future and what? 1) Be variable. O2) Be fixed. 3) Be paid in cash. 4) Be different among alternatives