ASSIGNMENT 2 Relevant Costing and Decision-Making Assessment Question 1 Machine Parts & More projected that the cost of producing 5,000 units of a component will be $39 per unit. This component can also be purchased at a market price of $38. If the company chooses to purchase the item%75 of fixed overhead will remain. The production cost is displayed in the table below Per Unit $10 8 Total $50,000 40,000 Direct Material Direct Labor Applied Variable Factory Overhead Applied Fixed Factory Overhead 9 45,000 12 60,000 $39 $195,000 Question 2 International Manufacturers Itd makes a variety of products. One of their regular customers placed a special order for 1,500 units of a product at $16.95 per unit. The company is operating below capacity and is able to complete the order. Should the company accept the special order The unit cost is provided in the table below Direct Material Direct Labor Variable Factory Overhead Variable Selling Expense Fixed Factory Overhead Fixed Office Expense $7.00 4.00 2.00 1.10 1.40 1.50 $17.00