A job of 1,000 VCR's manufactured by K Corp. contains defective parts. The cost incurred in manufacturing these defective units is $140.000. K Corp. can sell these units as scrap materials for $45 per unit or repair all 1,000 units at a total cost of $70,000. If the units are repaired, they can be sold at the normal price of $200 per unit. 1 What will be the total amount of the loss incurred by K Corp. on the sale of these units if they are sold for scrap at $45 per unit? 2 What will be the average perunit manufacturing cost of the VCR, including repair costs, assuming that K Corp. does the repairs? per unit 3 What will be the total amount of the loss incurred by K Corp, on the sale of these units if they are repaired and sold for $200 per unit? loss What is the relevant cost to K Corp. in deciding whether or not to repair the units? (State this cost as a total amount for all 1,000 units.) S 5 Should K Corp (1) sell the units for scrap or (2) repair the units? Underline the most profitable action, and indicate the amount of the net financial benefit of this action to the company. S 6. Johnson produces 7,000 skateboards each month, which it sells for S60 each. Variable costs are $25 per unit, and fixed costs are $95.000 per month. A Canadian company has offered to buy an additional 1,000 skateboards for $30 per unit. Assuming that normal sales volume and fixed costs remain unchanged, filling this special order will cause Johnson's operating income to: a b e d Decrease by $30,000. Decrease by S6,250. Decrease by $5,000. Increase by $5,000. 7. ILF makes 2,000 waterproof mattresses annually to be used in one of its products. The unit cost of the mattresses includes variable costs of $45 and fixed costs of $30. If the mattresses were purchased from an outside supplier, 60% of the fixed costs could be climinated. Buying mattresses from an outside supplier at a price of $50 each would cause ILF's operating income to: b c d Increase by S26,000. Increase by $30,000. Increase by $6,000. Decrease by $10,000