A company has an inventory of $1,150$ assorted parts for a line of missiles that has been discontinued. The inventory$$90,000$ increase, $($c$)$ $$195,000$ increase, or $($d$)$ $$285,000$ increase? Show your calculations.

The Albany Company manufactures Part No$.498$ for use in its production line. The manufacturing cost per unit for $10,000$ units of Part No$.498$ is as follows:

$($Click to see the manufacturing cost per unit.$)$

Read part $2\text{'}$s requirement.

$$90,000$ increase, $($c$)$ $$195,000$ increase, or $($d$)$ $$285,000$ increase? Show your calculations.

Begin by selecting the labels to calculate the effect on operating income and then enter in the supporting calculations.

$x$ units in special order

Effect on operating income

Data table

Direct materials

The Bench Company has offered to sell $10,000$ units of Part No$.498$ to Albany for

$$71$ per unit. Albany will make the decision to buy the part from Bench if there is an

overall savings of at least $$50,000$ for Albany. If Albany accepts Bench's offer, $$6$

per unit of the fixed overhead allocated would be eliminated. Furthermore, Albany

has determined that the released facilities could be used to save relevant costs in

the manufacture of Part No$.575.$

cost is $$76,000.$ The parts can be either $($a$)$ remachined at total additional costs of $$27,500$ and then sold for $$34,000$

or $($b$)$ sold as scrap for $$5,000.$ Which action is more profitable? Show your calculations. $($Only complete the necessary

answer boxes.$)$

$($a$)$

$($b$)$