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Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed
Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the factory supervisor, which would continue to be paid even if the components were purchased. Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit What is the dollar advantage or disadvantage to making the components? Select one: $80,000 disadvantage none of these $5,000 disadvantage $5,000 advantage 7 Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 60,000 units per year is as follows: ut of Direct materials $10.00 Direct labour 3.00 Variable manufacturing overhead 2.00 Fixed manufacturing overhead 4.00 Variable selling and administrative expenses 2.50 Fixed selling and administrative expenses 2.40 The normal selling price is $25 per unit. The company's capacity is 75,000 units per year. An order has been received from a mail-order house for 10,000 units. What is the minimum price that should be charged per unit for this special order? Select one: $17.50 $15 $23.90 $25 Managerial Accounting (BUSI-3320-28) Manico Company produces three products-X, Y, & Z-with the following characteristics: Y z Selling price per unit $20 $16 $15 Variable cost per unit 8 12 6 Contribution margin per unit $12 $4 $9 Machine hours per unit 10 6 4 The company has only 2,000 machine-hours available each month. In what sequence should orders be filled if the company wants to maximize its total contribution margin? Select one: Y.X then z Z X, then Y 9X, Y then z X, Z then Y
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