Assume a merchandising company is deciding whether to keep or drop one of the many product lines that it sells at its retail store location. Which of the following would be relevant to the decision? Multiple Choice The general administrative expenses allocated from corporate headquarters to this product line The rent paid for the company's retail space, a portion of which is allocated to this product line The store manager's salary The contribution margin earned by this product line Assume that each year a company normally produces and sells 80,000 units of its only product for $40 per unit. The company's average unit costs at this level of activity are given below: The company's relevant range of production is 70,000100,000 units. It has an opportunity to sell 20,000 more units to new overseas customer. The import duties and foreign permits associated with the order would cost $16,000. However, the only selling cost associated with the order would be $1.50 per unit. What is the minimum price that the company could charge on this order anc still break even with respect to this opportunity? Multiple Choice $26.30 $23.80 $24.80 $24.60 Assume a manufacturing company is deciding whether to make or buy a component part. Which of the following indicates the need to include an opportunity cost when making the decision? Multiple Choice If the company buys the part (instead of making it) it will expand the unused capacity within its plant. If the company buys the part (instead of making it) it will pay a price to the supplier that is less than the full manufacturing cost of the part. If the company buys the part (instead of making it) it can use newly available capacity to introduce and produce another profitable product. If the company buys the part (instead of making it) it will continue to pay the full salary of the plant manager