ASAP Please!

1. Corvette Products Corporation has received a request for a special order of 4,000 units of product X22 for $26.60 each. Product X22's unit product cost is $25.80, determined as follows:

Direct materials	$2.40
Direct labor	7.70
Variable manufacturing overhead	6.80
Fixed manufacturing overhead	8.90
Unit product cost	$25.80

Direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs. The customer would like modifications made to product X22 that would increase the variable costs by $3.00 per unit and that would require an investment of $23,000 in special molds that would have no salvage value. This special order would have no effect on the company's other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company's overall net operating income would increase (decrease) by:

A. $3,200

B. $3,800

C. ($48,400)

D. ($31,800)

2. The Corvette Corporation has purchased a new donut maker. It cost $20,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected:

Sales		$30,000
Expenses:
Flour, etc., required in making donuts	$15,000
Salaries	8,000
Depreciation	2,000	25,000
Net operating income		$5,000

Assume cash flows occur uniformly throughout a year except for the initial investment. The accounting (simple) rate of return on the new machine is closest to:

A. 15.0%

B. 23.3%

C. 16.7%

D. 25.0%