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A sporting goods company is in the business of making balls for different sports. They recently received an offer to sell 597 customized soccer balls

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A sporting goods company is in the business of making balls for different sports. They recently received an offer to sell 597 customized soccer balls to a large youth soccer organization for $24 per ball. The company has capacity to fill the order. The average costs for a soccer ball are: Direct Materials Direct Labor Variable Manufacturing Overhead 5 Variable Selling Expenses Fixed Manufacturing Overhead 4 Total Cost per Ball Solar Sun Systems manufactures power management hardware for solar systems. Another company has offered to sell Solar Sun a switch component they use in their hardware for $34.42 per unit. The cost information on a per unit basis for the switch is a follows: $4 Direct Materials $12.25 Direct Labor $10.8:3 Variable Overhead $4.58 Fixed Overhead $10.3 $25 The custom order will incur no variable selling None of the fixed overhead can be avoided. What expenses. However, due to a special logo needing is the cost/benefit of purchasing the switch from the outside supplier on a per unit basis. Enter a net expense will increase by $10 per ball. How will the cost of making the switch as a negative number (ie 1.50). Enter a net benefit,for making the switch as a positive number (ie. 1.50). Round your answer to two decimal places to be embossed on each ball, the direct materials proft of the company increase or decrease if they decide to accept the offer? Enter a net decrease a a negative number (ie. -4000). Enter a net increase as a positive number (ie. 4000). Round

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