A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10000 units: Direct materials $ 4 Direct labor 10 Variable overhead Fixed overhead 6 A foreign company wants to purchase 1500 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is S(1500) $500 O S(4500). $4500 Sheffield Corp. incurs the following costs to produce 10100 units of a subcomponent Direct materials $8484 Direct labor 11413 Variable overhead 12726 Fixed overhead 16200 An outside supplier has offered to sell Sheffield the subcomponent for $2.85 a unit. If Sheffield accepts the offer, it could use the production capacity to produce ancther product that would generate additional income of $3600. The increase (decrease) in net income from accepting the offer would be $(3600). $238. O $7438. $(238). nges Bonita Industries has the following costs when producing 100000 units: Variable costs $600000 Fixed costs 900000 An outside supplier is interested in producing the item for Bonita. If the item is produced outside, Sandusky could use the released production facilities to make another iterm that would generate $100000 of net income. At what unit price would Bonita accept the outside supplier's offer if Bonita wanted to increase net income by $80000 O $5.80 $6.20 $7.00 $7.80 Concord Corporation produces 1000 units of a necessary component with the following costs Direct Materials $31000 Direct Labor 20000 Variable Overhead 5000 Fixed Overhead 7000 None of Concord Corporation's fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Concord Corporation would be willing to accept to acquire the 1000 units externally? $53000 $66000 $59000 $64000 It costs Marigold Corp. $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 3800 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Marigold has sufficient unused capacity to produce the 3800 scales. If the special order is accepted, what will be the effect on net income? $11400 decrease $7600 increase $57000 increase $7600 decrease